U.S. Rate Futures Price In More Than 100 BPs Of Rate Cuts In 2024 Following Fed Decision, Little Changed From Before Fed Statement
Portfolio Pulse from Benzinga Newsdesk
U.S. rate futures are pricing in over 100 basis points of rate cuts in 2024 after the Federal Reserve's latest decision. This outlook remains largely unchanged from the expectations set prior to the Fed's statement, according to LSEG's Fedwatch.
December 13, 2023 | 7:08 pm
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POSITIVE IMPACT
The expectation of rate cuts in 2024, as indicated by U.S. rate futures, could have a positive impact on SPY, an ETF that tracks the S&P 500, as lower interest rates can boost economic growth and market sentiment.
SPY, which reflects the broader market, is likely to be positively influenced by the prospect of rate cuts as they typically lead to lower borrowing costs and can stimulate economic activity. However, the impact is not immediate and will depend on various factors including the actual implementation of rate cuts and economic conditions at the time.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70