Fed Hold Stabilizes Equity Outlook
A Fed hold on rates without rate cuts removes a headwind for equities rather than providing a tailwind, but is sufficient support for markets with structural domestic demand
Too little corroboration in the last 3 days to call a trend (6 articles). Watching for it to gain traction.
Mainstream financial press is carrying this — attention has broadened beyond specialist outlets.
"Market dynamics were further influenced by U.S. producer price stagnation in July and moderate unemployment claims, shifting confidence towards a potential interest rate pause by the Federal Reserve."
"traders recalibrated their expectations for a September rate hike, projecting a 65% probability of the Fed maintaining current rates. The global stock index climbed 0.20%, led by European and Asian equities."
"Traders are pricing in a 63% chance that the Fed will keep interest rates unchanged at its meeting next month, according to CME's FedWatch tool."
"Traders are now pricing in a 62 per cent chance of the Fed holding rates at its September meeting, according to CME's FedWatch Tool. Wall Street's fear gauge, the Cboe Volatility Index, dipped 0.8 point to 14.45, its lowest level since January."
"Markets appeared to shift their focus toward mostly solid corporate earnings while still absorbing the Federal Reserve's decision a day earlier to leave its benchmark borrowing rate alone for the time being."
"It was a hold and not a cut. With markets pricing nearly 80% odds of a hike by September, the July policy decision removes a headwind rather than adding a tailwind. For a market with a structural domestic bid, that is enough."