US Market Volatility: Analyzing the Impact of Fed Rate Cuts on the S&P 500

Wednesday, 25 September 2024, 17:34

US market volatility is rising as the S&P 500 falls after a two-day gain, reflecting investor uncertainties regarding the Fed's potential rate cuts. Economic indicators are influencing market behavior, and concerns about growth remain. The Fed's actions will play a critical role in shaping future volatility in the US markets.
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US Market Volatility: Analyzing the Impact of Fed Rate Cuts on the S&P 500

US Market Volatility and Recent Trends

The S&P 500 fell on Wednesday after wavering throughout the session, indicating increased us market volatility as investors assess the Federal Reserve's future approach to rate cuts. The Nasdaq 100 closed modestly higher, while the 10-year US Treasury yield advanced, hovering around 3.79%.

Current Market Reactions

Traders are turning to upcoming earnings from major companies like Micron Technology Inc. and Jefferies Financial Group Inc., with Micron shares jumping over 10% in after-hours trading due to favorable revenue predictions driven by AI demand. New home sales fell last month; however, mortgage rates have seen a decline for eight weeks straight, prompting new interest in home purchases.

Market Insights and Future Outlook

  • Skylar Olsen, chief economist at Zillow, mentioned economic adjustments linked to current mortgage rates.
  • Investors are anticipating Jerome Powell's speech and further price data.
  • Michael Rosen, chief investment officer at Angeles Investments, believes the market has been overestimating Fed easing.

Looking ahead, market participants are wary of potential volatility-inducing events, such as the upcoming US elections.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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