Global bond markets are fully rejecting the Fed’s move. A rate cut on paper means nothing if yields keep climbing. The irony is your mortgage still gets more expensive https://t.co/CRWbx0xxrW ...

Group 1: Federal Reserve Rate Cut - The Federal Reserve lowered rates by 25 basis points on September 17, marking the first rate cut in 2025, with an expectation of an additional 50-basis-point cut this year [1] - The rate cut occurred despite inflation remaining above the Fed's 2% target, with the core Personal Consumption Expenditures (PCE) inflation projection for 2025 maintained at 3.1% and the 2026 forecast raised from 2.4% to 2.6% [2] - The Fed raised its growth forecast, expecting the U.S. economy to expand by 1.6% in 2025 and 1.8% in 2026, both 20 basis points higher than previous forecasts [4] Group 2: Impact on Industries - Rate cuts are generally positive for interest-sensitive sectors such as automotive and housing, as lower interest rates can boost demand; however, the housing market is currently facing challenges [6] - Consumer discretionary companies, retailers, and e-commerce firms like Amazon (AMZN) are expected to benefit from rate cuts, as they can stimulate consumer spending [7] - Companies with significant debt burdens will see reduced interest expenses, enhancing profitability, while buy-now-pay-later (BNPL) companies like Affirm (AFRM) will also benefit from lower borrowing costs [7]

Core Viewpoint - The Federal Reserve has implemented its first quarter-point rate cut in a significant period, indicating that more cuts may follow, which could encourage investors to consider new stock purchases as the market transitions from summer to autumn [1] Group 1 - The recent rate cut by the Fed marks a pivotal moment for investors who have been hesitant to make new investments [1] - The anticipated continuation of rate cuts may create a favorable environment for stock market performance [1] - The transition from a "sizzling summer" to a "warm autumn" suggests a positive outlook for stocks in the near term [1]

the most comical thing would be for us to make new ATHs on majors off the back of the rate cut newsjust enough for vocal bears to pivot on their 'cycle top' callsthen we get aggressively nuked, making them pivot to calling cycle top againonly for the mother of all rallies across majors and altcoins/memecoins to commence and send us to insanely crazy new highs across the boardUnipcs (aka 'Bonk Guy') 🎒 (@theunipcs):everyone was calling cycle top just a week agonow they're starting to get euphoric againdo not ...

Welcome to Yahoo Finance's flagship show, The Morning Brief. I'm Julie Hyman. Let's get to the three things you need to know today.First up, Intel shares soaring on a $5 billion investment from Nvidia. The two companies will co-develop chips for PCs and data centers, and the investment will make Nvidia one of Intel's largest shareholders. Nvidia CEO Jensen Jong calling this collaboration historic and a fusion of two worldclass platforms.It comes as Intel has fallen far behind in the global chip race. It's g ...

🚨 83% probability of another 25 bps rate cut at the October FOMC meeting in 41 days https://t.co/hCnqVtOMke ...

Core Viewpoint - The Federal Reserve has lowered the benchmark interest rate by 25 basis points to a range of 4% to 4.25%, with expectations for two more cuts by the end of 2025, which has positively impacted small-cap stocks like the Russell 2000 [1][4]. Group 1: Market Performance - The Russell 2000 index, which tracks 2,000 smaller companies, has seen a significant increase of 10% since the end of July, outperforming the S&P 500 during the same period [4]. - Following the Fed's rate cut announcement, the Russell 2000 rose over 2% and approached its all-time closing high of 2,442.74, indicating a potential recovery for small-cap stocks [4]. - Analysts predict that the Russell 2000 could rise as much as 20% in the next 12 months, compared to an 11% increase expected for the S&P 500 [7]. Group 2: Economic Factors - The reduction in interest rates is particularly beneficial for small-cap companies, many of which are highly leveraged and rely on variable financing, thus reducing their interest expenses [5][7]. - Despite the positive outlook, small-cap firms face risks such as lower margins, higher debt loads, and sensitivity to tariffs, which could impact their performance [5]. Group 3: Market Sentiment - Major financial institutions like Bank of America and UBS foresee a rebound in the Russell 2000, while Goldman Sachs warns of limited potential for small-caps to consistently outperform [5]. - The S&P 500 has been performing well, setting five records in a month, with some analysts predicting it could reach 7,000 by year-end, highlighting a broader market optimism [3].

Core Viewpoint - Hong Kong's three note-issuing banks, HSBC, Standard Chartered, and Bank of China (Hong Kong), are reducing their prime lending rates for the first time since December, which will lower funding costs and provide relief to businesses and mortgage borrowers in the city [1][2]. Group 1: Rate Adjustments - HSBC and Bank of China (Hong Kong) will lower their prime lending rates by 12.5 basis points to 5.125% effective Friday and Monday respectively, while Standard Chartered will cut its rate to 5.375% from Monday [2]. - All three banks will also reduce their savings rates by the same margin to 0.125% [2]. Group 2: Monetary Policy Context - The banks' rate cuts follow the Hong Kong Monetary Authority's (HKMA) decision to reduce its base rate by a quarter point, aligning with the US Federal Reserve's overnight cut [4]. - The HKMA's actions are part of a peg-linked system, but Hong Kong's commercial lenders independently determine their prime lending and deposit rates [4]. Group 3: Impact on Borrowers - HSBC's Hong Kong CEO stated that the adjustments are appropriate given the US rates decision and local market conditions, noting that HSBC has lowered its Hong Kong dollar best lending rate by 75 basis points since September 2024 [5]. - For a HK$5 million, 30-year loan priced at prime minus 1.75%, the 12.5-basis-point cut reduces the effective mortgage rate to 3.375%, lowering the monthly payment by HK$347 to HK$22,105 [5]. - As of the end of July, Hong Kong homebuyers had HK$1.887 trillion in outstanding mortgage loans, with an average mortgage size of HK$4.51 million [6].

Economic Performance - New Zealand's economy contracted by 0.9% in Q2, worse than the expected 0.3% decline, marking a contraction in three of the last five quarters [1][2] - Annual GDP decreased by 0.6%, contrary to market expectations of no change [2] Market Reactions - Following the GDP data, two-year swap rates fell by 10 basis points to 2.7290%, the lowest since early 2022, and the kiwi dollar dropped by 0.5% to $0.5932 [2] - The market is now anticipating a total of 58 basis points in cuts to the official cash rate (OCR), up from 48 basis points prior to the GDP release [3] Central Bank Outlook - The Reserve Bank of New Zealand (RBNZ) is expected to cut the OCR by 50 basis points in October and an additional 25 basis points in November, as indicated by Westpac [4] - The RBNZ has noted that household and business spending is constrained by uncertainty, falling employment, and rising prices for essentials [3][4] Sector Performance - The construction sector continues to decline, manufacturing is affected by slowing goods exports, and the service sector remains weak due to stagnant tourism [4] - The economy has also been impacted by U.S. import tariffs set at 15% on various products, including those from New Zealand [5] Future Expectations - There are signs of improvement in the third quarter, with slight increases in manufacturing and services indexes, as well as monthly employment and card spending data [6] - ANZ Senior Economist suggests that growth has returned in a muted manner, indicating the country may avoid another technical recession [7]

Stock markets spiked and then immediately reversed course after the Federal Reserve lowered the federal funds rate by a quarter percentage point to 4% from 4.25% on Wednesday in a move that had been telegraphed for weeks leading up to the meeting. Newly sworn in Federal Reserve Governor Stephen I. Miran voted against the action, in favor of a steeper cut of half a percentage point, the Fed disclosed in its monetary policy update. Miran was the only member to dissent. Stock markets, which have been at all- ...