Dow Jones Gains Steam: Is Netflix’s Earnings Surge and Michigan Sentiment the Market’s Next Big Catalyst or Just a Mirage?
Going forward, market expectations for the Federal Reserve’s (Fed) monetary policy outlook will remain a key driver for the US indices.
According to the CME FedWatch tool, the probability for the Fed to cut interest rates in the September meeting has reduced to 58% from 70.4% seen a week ago. The tool also shows that the Fed is almost certain to leave interest rates steady in the range of 4.25%-4.50% in the policy meeting later this month.
Contrary to market expectations, Fed Governor Christopher Waller continues to argue in favor of reducing interest rates in the July policy meeting, citing downside risks to economy and labor market. “The Fed should cut interest rates 25 basis points at July meeting as rising risks to economy and employment favour easing policy rate,” Waller said.
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