This story was originally published on Multifamily Dive. To receive daily news and insights, subscribe to our free daily Multifamily Dive newsletter. The Federal Reserve cut its main interest rate by 25 basis points on Wednesday to a range between 3.75% to 4% following a two-day meeting. The decision marks the second rate reduction by the central bank this year, coming after it reduced rates by a quarter point in September. However, apartment industry observers don’t expect major short-term effects from th ...

Economic Outlook - The FOMC is not releasing a Summary of Economic Projections this week, meaning no updates on interest rate forecasts from Fed officials [1] - The Fed is expected to cut the federal funds target range by 25 basis points to 3.75%-4.00% and may halt its quantitative tightening regime [2] - Markets are anticipating a 90% chance of another 25 basis point rate cut at the next FOMC meeting on December 9-10, with an overall expectation of a 115 basis point cut by the end of 2026 [2] Market Performance - US stock indexes are reaching new all-time highs, with the S&P 500, Dow Jones, and Nasdaq 100 all climbing [4] - The S&P 500 Index is up by 0.32%, the Dow Jones by 0.40%, and the Nasdaq 100 by 0.47% [5] - Easing global trade tensions are contributing to stock gains, particularly following President Trump's comments on lowering tariffs on Chinese goods [4] Sector Performance - Semiconductor stocks are showing strength, led by a 4% increase in Nvidia, following news of potential access to Nvidia's AI processor for China [3][18] - Other chipmakers like Lam Research and Advanced Micro Devices are also seeing gains of over 3% [18] Trade Relations - A tentative trade agreement between the US and China is expected to be announced, which includes China agreeing not to restrict rare earth metal exports for at least one year [8] - The US and South Korea have finalized a trade deal involving $150 billion in shipbuilding investments in the US [4] Earnings Reports - This week is significant for earnings, with 173 S&P 500 companies reporting; 84% of those that have reported so far have beaten forecasts [9] - Notable companies reporting include Alphabet, Meta, Microsoft, Apple, and Amazon [9] - Q3 profits are expected to rise by 7.2% year-over-year, the smallest increase in two years [9] Company-Specific Movements - Teradyne's stock is up over 15% after reporting Q3 net revenue of $769.2 million, exceeding expectations [19] - Seagate Technology is also up more than 15% after reporting Q1 adjusted EPS of $2.61, above consensus [19] - Bloom Energy and Caterpillar are up more than 13% and 11% respectively, following strong earnings reports [20] Market Sentiment - The ongoing US government shutdown is impacting market sentiment, with estimates of 640,000 federal workers being furloughed [13] - The shutdown is delaying the release of key economic reports, which could affect market performance [13]

Core Viewpoint - The Bank of Canada has reduced its key overnight interest rate to 2.25%, marking the lowest level since July 2022, and indicated that this may conclude its cutting cycle unless inflation and economic outlook change [1][2][3] Economic Growth Projections - The Bank of Canada revised its economic growth forecast for 2025 down to 1.2% from an earlier estimate of 1.8%, and for 2026 down to 1.1%, with a recovery expected to 1.6% in 2027 [2] - The bank anticipates annualized growth of 0.5% in the third quarter and 1% in the fourth quarter [5] Inflation Management - The Bank aims to keep annual inflation anchored at 2%, the midpoint of its target range of 1% to 3%, with an expectation that inflation will average around 2% over the year [5] - Consumer prices are projected to average approximately 2.1% in 2026 [5] Economic Conditions - Canada's economy contracted by 1.6% in the second quarter, with early indicators suggesting a potential near-contraction in the third quarter [4] - The current economic weakness is characterized as a structural transition rather than merely a cyclical downturn, limiting the effectiveness of monetary policy in stimulating demand while maintaining inflation targets [4] Trade Policy Impact - The Bank of Canada acknowledges that U.S. trade policy has been a significant factor affecting demand and costs for businesses, with the expectation that these forces will offset each other [3] - The range of possible economic outcomes remains wider than usual due to the unpredictability of U.S. trade policy [6] Currency and Market Reactions - Following the interest rate announcement, the Canadian dollar strengthened, trading up 0.22% to 1.3915 against the U.S. dollar [6] - Money markets currently do not anticipate any further rate cuts until March of the following year [6]

分组1 - Nvidia is approaching a market capitalization of $5 trillion, requiring a share price of approximately $25.36 to achieve this milestone [2][3] - The upcoming discussions involving President Trump and China are expected to focus on Nvidia chips, placing the company in the spotlight [3] - The semiconductor sector has seen a significant upward trend, with most chip companies experiencing gains, although Broadcom had a slight decline [4] 分组2 - The Federal Reserve's decision day is anticipated, with expectations of a 25 basis point cut and a high probability of a December cut [5][6] - Jerome Powell's upcoming press conference may lack transparency due to limited economic data, potentially leading to market frustration [6][7] - Major tech companies, including Meta Platforms, Microsoft, and Google Alphabet, have shown substantial stock price increases over the last six months, with Google up 67% and Meta up 35% [10]

The Fed find futures forward curve is not as clear cut this time around. The October futures contract shows an expected rate within the 4% to 4.25% range. The December futures contracts is indicating a more sizable rate cut. It’s pre-dawn Wednesday morning. Early this afternoon, the US Federal Open Market Committee (Fed, FOMC) 2-day meeting will conclude, culminating with an interest rate announcement from Chairman Jerome Powell at 14:00 (ET) and subsequent press conference (14:30). This leaves a ...

Core Viewpoint - The Federal Reserve is anticipated to cut interest rates by 0.25 percentage points to a target range of 3.75%-4.00% during its upcoming policy meeting, following a similar cut in September, marking the first reduction of the federal-funds rate this year [1][2]. Group 1 - The government shutdown has hindered the Fed's access to official economic reports, prompting officials to rely on private surveys, state data, and financial-market signals to inform their decisions [2]. - With a cooling job market and inflation remaining approximately one percentage point above the Fed's 2% target, officials are cautiously balancing their dual mandate, favoring a small pre-emptive rate cut in September to mitigate potential economic downturns [2][3]. - Investors are expected to focus on the tone of the Fed's press release and Chair Jerome Powell's post-meeting press conference, rather than the immediate policy decision, as they look for indications regarding the December meeting [3].

Core Viewpoint - Gold prices have experienced a significant decline after reaching a record high, presenting a potential buying opportunity for investors as the Federal Reserve is expected to cut interest rates further before the year ends [1][3]. Group 1: Market Trends - Gold futures for December settled at $3,983.10 per ounce, marking a 0.9% decrease and a third consecutive session loss [3]. - Since the record high of $4,359.40 on October 20, gold prices have dropped nearly 9% [3]. - Despite the recent decline, gold is still trading approximately 3% higher this month and has gained nearly 51% year-to-date [3]. Group 2: Expert Insights - Ryan McIntyre from Sprott Inc. stated that gold remains well-positioned for long-term growth due to eroding global trust levels, which drive demand for independent assets [2]. - Aakash Doshi from State Street Investment Management described the recent decline in gold prices as temporary, suggesting a potential buying floor around $3,600 to $3,650 [4]. - Stefan Gleason from Money Metals Exchange noted that the expected interest rate cut by the Fed would support the pro-gold narrative, as lower rates benefit non-interest-yielding gold [5]. Group 3: Economic Context - The precarious fiscal outlook in Western economies, particularly the U.S. with high deficits and substantial federal debt, could support gold prices over the medium to long term as sovereign risk rises [2]. - Gleason emphasized that the world is overexposed to the U.S. dollar and underexposed to gold, predicting that gold prices will continue to rise in all fiat currencies after adjusting from recent fluctuations [6].

Core Viewpoint - Gold has experienced a significant selloff recently, and with the Federal Reserve likely to reduce benchmark interest rates, there may be a missed opportunity for investors to acquire gold at a lower price [1] Group 1 - The recent selloff in gold indicates a potential buying opportunity for investors [1] - The expectation of the Federal Reserve cutting interest rates could influence gold prices positively in the near future [1]

Core Viewpoint - The Federal Reserve is expected to cut short-term interest rates again on October 29, as inflation pressures ease and job growth weakens, despite ongoing government shutdown complicating economic data availability [1][2][12]. Economic Indicators - Inflation increased to 3% year-over-year in September, slightly up from 2.9% in August, but analysts believe the Fed will prioritize cooling labor market risks over persistent inflation [2][13]. - The Fed's benchmark short-term rate was previously cut to a range of 4% to 4.25% in September, with expectations for another quarter-point reduction [5][6]. Labor Market Insights - The labor market is showing signs of cooling, with private U.S. employers shedding 32,000 jobs in September, raising concerns about potential job cuts by companies [6][14]. - Amazon has confirmed plans to cut about 14,000 corporate jobs, highlighting the growing pressure on the job market [7]. Consumer Impact - Lower interest rates are expected to stimulate the economy by making loans and credit more affordable, benefiting borrowers and homebuyers [9][11]. - A WalletHub survey indicated that over half of respondents feel another quarter-point cut would not significantly impact their lives, suggesting a disconnect between rate cuts and consumer sentiment [10]. Data Collection Challenges - The ongoing government shutdown has led to a data blackout, delaying the September jobs report and halting most data collection at the Bureau of Labor Statistics [12][16]. - The Fed is relying on alternative data sources, such as state-level unemployment claims, but acknowledges these are not as effective as traditional government data [13][14].

Core Viewpoint - The Federal Reserve is expected to cut its key interest rate on Wednesday, potentially signaling another cut in December to support hiring and stimulate the economy [1] Interest Rate Cuts - A rate cut on Wednesday would mark the second reduction this year, aimed at lowering borrowing costs for consumers, particularly for mortgages and auto loans [1] - The average 30-year mortgage rate has decreased from 6.6% to approximately 6.2% since Fed chair Jerome Powell indicated potential rate cuts in late August, which may help the sluggish housing market [1] Economic Context - The Federal Reserve is navigating an unusual economic period, making future moves more difficult to predict than usual [1]