The Federal Reserve is widely expected to lower interest rates by 25 basis points later on Wednesday, bringing the federal funds target to 4.00%-4.25%?a policy shift that, while highly anticipated, may offer little fuel to a stock market already trading at all-time highs if history is any guide. Over the past 25 years, the S&P 500 has often struggled following a Fed rate cut.
US housing starts tumbled more than projected in August amid weakness in both single and multi-family units, while building permits dropped for the fifth straight month, government data showed Wednesday. Housing starts plunged 8.5% sequentially to a seasonally adjusted annual rate of 1.31 million units last month, according the Census Bureau and the Department of Housing and Urban Development.
The Bank of Canada lowered its overnight rate by 25 basis points to 2.50% on Wednesday, right in line with market expectations, said Geoff Phipps, portfolio manager and trading strategist at Picton Mahoney Asset Management. However, just a few weeks ago, in late August, markets were priced for only a 50% chance of a September cut.
The Bank of Canada lowered the policy rate 25 basis points to 2.50% on Wednesday, still within its estimated neutral rate range of 2.25% to 3.25%, said Desjardins. The accompanying communications cited dissipating momentum in underlying inflation measures, diminishing fears of tariff-induced inflation ahead, and the further deterioration in the labor market seen this summer.
Bank of Canada Governor Tiff Macklem said Wednesday the Governing Council cut its policy interest rate by 25 basis points to 2.50%, citing a weaker economy and easing inflation pressures. The remarks came in an opening statement for his press conference, scheduled to begin at 10:30 a.m. ET and published on the central bank's website.
Bitcoin is hovering around $116,000 ahead of Wednesday?s Federal Reserve interest rate decision as traders on Polymarket are heavily betting on both a 25 basis points and a 50 basis points cut. What Happened: At the time of writing, a 25 basis points cut is priced at 90%, compared to 8% for a 50 basis points cut and 2% for no cut.
The Bank of Canada resumed cutting rates on Wednesday, taking the overnight rate 25bps lower and into accommodative territory at 2.50%, as widely expected, said CIBC. The move follows a cooling in underlying inflation pressures and a broadening deterioration in the labor market, along with ongoing trade uncertainty that is constraining investment, as cited in the BoCs statement, noted the bank.
The Bank of Canada Wednesday cut its target for the overnight rate by 25 basis points to 2.50%, with the Bank Rate at 2.75% and the deposit rate at 2.45%, matching most economists' expectations. In the months ahead, slow population growth and a weaker labor market are likely to weigh on household spending, the central bank said in a statement.
Community Associations Institute, the leading international authority supporting condominium associations, homeowners associations, and housing cooperatives, is urging the Trump administration to expand Federal Housing Administration loan flexibility for condominiums in collaboration with the Community Home Lenders of America.
Markets are fully pricing in a 25bps rate cut by the Bank of Canada on Wednesday, said ING. The BoC is slated to release its policy statement at 9:45 a.m. ET on Wednesday. Tuesday, Canada reported headline inflation at 1.9% year over year, below the 2.0% consensus, while core measures were unchanged at 3.0/3.1% as expected.
The Canadian province of British Columbia is projecting an $11.6 billion deficit, or 2.6% of gross domestic product, in the Q1 fiscal update, deeper than the $10.9 billion laid out in the 2025 budget, said Bank of Montreal. This continues a lengthening run of B.C. posting deeper and more prolonged budget deficits, noted the bank.
Gold moved down from a record high early on Wednesday as the dollar rose even with the Federal Reserve expected to cut interest rates for the first time this year when it ends the two-day meeting of its policy committee this afternoon. Gold for December delivery was last seen down US$18.20 to US$3,706.90 per ounce, falling off Tuesday's record high.
August housing starts fell by 8.5% from the previous month to a 1.307 million annual rate, below expectations compiled by Bloomberg as of 7:40 am ET for a 1.365 million rate after an increase to a 1.429 million pace in July. Building permits decreased by 3.7% to a 1.312 million rate in August, below the 1.37 million rate expected and following a decline to a 1.362 million rate in July.
Broad asset classes are generally little changed so far early Wednesday as they await the Federal Reserve and Bank of Canada decisions, said Scotiabank. Overnight developments included soft United Kingdom core consumer price index and another Bank Indonesia surprise cut amid political turmoil, noted Scotiabank. Brazil's central bank is also on tap after the Fed on Wednesday.
The US dollar rose against its major trading partners early Wednesday, except for a decline versus the yen, as markets look ahead to the Federal Open Market Committee's meeting announcement at 2:00 pm ET and Federal Reserve Chairman Jerome Powell's press conference at 2:30 pm ET.
Tuesday's Canadian inflation figures were broadly in line with expectations, said Commerzbank. The only deviation from expectations was the headline rate, which was slightly lower than anticipated due to volatile components, wrote the bank in a note to clients. As expected, the trimmed mean, which excludes volatile components, declined.
Wall Street futures inched lower pre-bell Wednesday ahead of the much-anticipated rate decision from the Federal Reserve. The nation's central bank is widely expected to announce a 25-basis-point cut in its key policy interest rate at 2 pm ET. In the futures, the S&P 500 and the Nasdaq declined 0.1% each, while the Dow Jones was little changed.
A 25bps rate is in the balance in Canada after the sharp United States tariff-induced slowdown in the economy in Q2 but the 1.6% seasonally adjusted annual rate contraction in GDP wasn't miles away from the central bank forecast, said Societe Generale. However, the labor market took a turn for the worse over the summer, with companies shedding jobs in July and August, noted the bank.
The Canadian dollar is the worst-performing G10 currency on a year-to-date basis after the US dollar and is also the weakest in September, even slipping slightly against the greenback, MUFG said. The fundamental backdrop has deteriorated and expectations for renewed rate cuts have increased, the bank wrote in a note to clients.
Societe Generale in its early Wednesday economic news summary pointed out: -- Currencies, bonds, stocks positioned for dovish 25bps Federal Reserve rate cut. -- United Kingdom consumer price index steady at 3.8% year over year in August, core moderates to 3.6%. Services slow to 4.7% year over year from 5.0% in July, below the forecast.
ADTRAN Holdings (ADTN) said Wednesday that it priced its private offering of $175 million of 3.75% convertible senior unsecured notes due Sept. 15, 2030, upsized from $150 million. The company also granted the initial purchasers a 13-day option to buy up to an additional about $26.3 million of notes.
Crude oil prices fell on Wednesday as markets expect an interest rate cut from the U.S. Federal Reserve during their meeting. Brent crude at last look lost 0.7% to US$68/barrel and West Texas Intermediate crude fell 0.7% to US$64.06/b. This comes after prices jumped in the previous session amid concerns about the impacts on supply of Ukrainian attacks on Russian energy infrastructure.
Cytokinetics, Incorporated (CYTK) today announced the pricing of its offering of $650.0 million aggregate principal amount of 1.75% convertible senior notes due 2031 in a private placement to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended.
Oatly Group (OTLY) said late Tuesday it priced a 1.70 billion Swedish Krona offering of senior secured floating rate bonds. The bonds will bear a rate equal to 3-month Stockholm Interbank Offered Rate plus 7% with a four-year tenor, according to a statement. The issue is expected to close on Sept. 30, subject to closing conditions, the company said.
The S&P 500 and the Nasdaq Composite fell from record levels on Tuesday as the Federal Reserve kicked off its two-day monetary policy meeting. The two indexes lost 0.1% each to close at 6,606.8 and 22,334, respectively. Among sectors, utilities saw the biggest drop, while energy led the gainers.
US equity indexes were lower after close on Tuesday, but were trading close to record levels as the US Federal Reserve remains on course to cut rates following better-than-expected retail sales print and an increase in industrial production.
Chimera Investment (CIM/PA) closed an underwritten public offering of $120 million of 8.875% senior notes due 2030. The proceeds include $5 million issued under an overallotment option, the company said Tuesday in a statement. The notes will list on the New York Stock Exchange under the symbol CIMP, and trading is expected to start Thursday. MT Newswires does not provide investment advice.
US equity indexes were lower on Tuesday amid likely interest rate cuts by the Fed this week and an increase in industrial production. * Industrial production increased by 0.1% in August, defying Bloomberg survey expectations of a 0.1% decline and following a revised 0.4% drop in July.
The Toronto Stock Exchange closed down from a record high Tuesday as market watchers await a Bank of Canada interest-rate decision tomorrow, with RBC saying it will be a "closer call than the market expects", and as Teck Resources closed lower after a federal minister hinted a proposed deal with Anglo American may not get the green light.
As the "slope of the municipal yield curve remains extremely steep and long bonds are cheap relative to U.S. Treasuries," Daryl Clements, a portfolio manager at AllianceBernstein (AB), predicts "long municipal bonds have a long way to go until they are considered fair value."
Chord Energy (CHRD) said Tuesday that it has priced a $750 million private offering of 6.0% senior unsecured notes due 2030, upsizing the deal by $250 million from its initial plan. The offering is expected to close Sept. 30, the company said. Net proceeds will be used to support Chord's acquisition of XTO's Williston Basin assets and for general corporate needs.
Financial stocks fell in late Tuesday afternoon trading, with the NYSE Financial Index down 0.3% and the Financial Select Sector SPDR Fund shedding 0.4%. The Philadelphia Housing Index declined 0.7%, and the Real Estate Select Sector SPDR Fund shed 0.7%. Bitcoin rose 1% to $116,530, and the yield for 10-year US Treasuries eased to 4.03%. In economic news, retail sales rose by 0.6% in August, ab...
Financial stocks fell in late Tuesday afternoon trading, with the NYSE Financial Index down 0.3% and the Financial Select Sector SPDR Fund shedding 0.4%. The Philadelphia Housing Index declined 0.7%, and the Real Estate Select Sector SPDR Fund shed 0.7%. Bitcoin rose 1% to $116,530, and the yield for 10-year US Treasuries eased to 4.03%. In corporate news, JPMorgan Chase (JPM) and Nomura are among th...
US equity indexes were lower ahead of the close on Tuesday as the Federal Open Market Committee commenced its two-day policy session amid a rise in US retail sales in August and higher business inventories in July.
The Federal Reserve is expected to cut rates on Wednesday at the Federal Open Market Committee meeting for September. This would mark the first cut since December 2024 and would come with stock market indexes at all-time highs.
US industrial production logged a surprise increase in August as manufacturing output rebounded amid strong growth in motor vehicles and parts, data from the Federal Reserve showed Tuesday. Industrial output rose 0.1% last month, following a downwardly revised 0.4% decrease in July. Manufacturing output grew 0.2% in August after a 0.1% contraction the prior month.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.
Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.
Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
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