Fed Rate Cut Hopes Dim as Mortgage Rates Climb and U.S. Stocks Dip

Core Insights - Financial markets are reacting negatively to a shift in interest rate expectations, with major U.S. stock indices experiencing a downturn [2] - Morgan Stanley has revised its forecast, no longer expecting an interest rate cut by the U.S. Federal Reserve in December [9] - The housing market is facing challenges as mortgage rates continue to rise, with the average U.S. 30-year fixed-rate mortgage increasing to 6.26% [3][9] Market Performance - The broader U.S. stock market reflected cautious sentiment, with the S&P 500 down 0.3%, Nasdaq down 0.5%, and Dow down 0.2% [4][9] - Individual stock performance showed Nvidia shares declining by 1%, indicating negative trends in the technology sector [5][9] Geopolitical Context - Geopolitical developments were noted, including the death of two members of Iran's IRGC during weapons training, contributing to the global risk landscape [6][9]