Fed Swaps Fully Price In Three Interest-Rate Cuts By Year-End
Portfolio Pulse from Benzinga Newsdesk
The market is now fully pricing in three interest-rate cuts by the Federal Reserve by the end of the year, according to Bloomberg. This shift in expectations could have significant implications for various sectors and assets, particularly those sensitive to interest rate changes.
August 01, 2024 | 2:09 pm
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The SPDR S&P 500 ETF (SPY) is likely to be impacted by the market's expectation of three interest-rate cuts by the Federal Reserve by year-end. Lower interest rates generally support higher equity prices as borrowing costs decrease and economic activity potentially increases.
The expectation of lower interest rates typically benefits equities, including broad market ETFs like SPY, as it reduces borrowing costs and can stimulate economic growth. This news is likely to have a positive short-term impact on SPY.
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