As North American markets opened this Monday, the tone was cautiously optimistic. The glow from last week’s coordinated Federal Reserve and Bank of Canada rate cuts hasn’t fully faded, and investors remain focused on whether easing can support growth through year-end.
North American markets spent today walking a careful line. On one side, investors are breathing easier after the Federal Reserve and Bank of Canada both delivered quarter-point rate cuts this week.
Today’s markets were driven by central bank action and investor hopes for more policy easing. The Federal Reserve and Bank of Canada both delivered 25 basis point rate cuts, with the BoC dropping its key rate to a three-year low of 2.5%. These moves follow signals from both banks that more cuts are likely later in the year. Reuters+1
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Today marks a turning point in North American economic policy expectations. The Federal Reserve is widely expected to cut interest rates by 25 basis points at its meeting later today. This would be the first rate cut from the Fed in 2025, signifying a shift from tightening toward beginning of easing, as inflation eases somewhat and labor market data shows signs of cooling. Reuters+3The Economic Times+3CCN.com+3
Wall Street opened higher today, buoyed by near certainty that the Federal Reserve will cut interest rates by 25 basis points at its meeting this week. Futures markets and major financial tools, including FedWatch, are essentially pricing in the cut as a done deal. Reuters+3Reuters+3Forex+3