The Bank of Canada's 25bps cut to 2.50% on Wednesday takes the overnight rate just below the mid-point of the official neutral range, said Bank of Montreal. It also brings the rate in line with the BoC's view on underlying inflation, and very close to the consumer price index excluding food & energy, noted the bank.
Gold futures were down for a second day early on Thursday as traders again take profits following Tuesday's record high even as the Federal Reserve cut interest rates for the first time this year and indicated more cuts are coming.
The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was up 0.7% and the actively traded Invesco QQQ Trust was 1% higher in Thursday's premarket activity as weekly jobless claims and manufacturing data followed the US Federal Reserve's rate cut.
US initial jobless claims fell by 33,000 to a level of 231,000 in the employment survey week ended Sept. 13, more than reversing an increase of 28,000 claims to a level of 264,000 in the previous week. Expectations were for a level of 240,000 claims in survey of analysts compiled by Bloomberg as of 7:40 am ET.
The Bank of England's Monetary Policy Committee kept Bank Rate on hold at 4% on Thursday, as expected, said Sanjay Raja, Deutsche Bank's chief United Kingdom economist. Thursday's decision was never really about a rate change, noted Raja. MPC divisions remain, pointed out the Deutsche Bank economist.
Unless the state government makes changes to revenue or expenditures Florida faces a combined deficit of $8.1 billion in fiscal years 2027-28 and 2028-29.
CUSIP Global Services today announced the release of its CUSIP Issuance Trends Report for August 2025. North American corporate CUSIP requests totaled 7,650 in August, which is down 9.1% on a monthly basis. The aggregate total of identifier requests for new municipal securities ? including municipal bonds, long-term and short-term notes, and commercial paper ? rose 5.5% versus July totals.
Kodiak Gas Services (KGS) said Thursday its subsidiary has launched another $200 million worth of 6.5% senior unsecured notes due 2033 through a private offering under its debt from Sept. 5. Net proceeds will be allocated toward the repayment of a part of the outstanding debt under Kodiak Gas Services (KGS)' revolving asset-based loan credit facility, the company said.
The US dollar rose against its major trading partners early Thursday, except for a decline against the euro, after the Federal Open Market Committee voted to lower its target policy rate by 25 basis points to a range of 4.00% to 4.25% Wednesday afternoon, and signaled that two more rate cuts are possible this year.
European bourses tracked higher midday Thursday, as traders weighed global central bank attitudes, and switched into a risk-on mode. Tech stocks rallied, while oil issues also gained in broad bull moves.
US equity markets were trending higher before the opening bell Thursday as the Federal Reserve delivered its first interest rate cut of 2025 and indicated further policy easing later in the year. The S&P 500 rose 0.8%, the Dow Jones Industrial Average increased 0.6% and the Nasdaq added 1% in premarket activity.
Wall Street futures pointed again to fresh record-highs pre-bell Thursday on Wall Street, as traders digested the Wednesday Federal Reserve rate cut and related commentary, along with a similar reduction by the Bank of Canada, and an expected hold-steady decision on Friday by the Bank of Japan.
Asian stock markets churned on Thursday as traders weighed the overnight rate cut by the US Federal Reserve and awaited a rate announcement on Friday from the Bank of Japan. Hong Kong and Shanghai lost ground, while broad equity indices in Tokyo, Taiwan and Seoul struck fresh all-time zeniths.
Bank of Montreal said Thursday the Bank of Canada's real policy rate is back near zero, last seen in early 2023 when the central bank was tightening and inflation was falling. Canada remains far from the deeply negative real rates that fueled excesses in housing and household spending during 2021-22, the bank said.
EUR/USD is now trading back below 1.180 after touching 1.1920 immediately following the FOMC announcement on Wednesday, said ING. Some positioning readjustments are probably contributing to the sharp EUR/USD drop during and after Federal Reserve Chair Jerome Powell's press conference on Wednesday, wrote the bank in a note.
Crude oil prices held steady on Thursday after the U.S. Federal Reserve cut interest rates by a quarter of a percentage point in response to weakness in the jobs market. Brent crude at last look was at US$67.96/barrel and West Texas Intermediate crude was at US$64.08/b. The Fed also indicated it will further reduce borrowing costs over the remainder of 2025.
The Federal Reserve cut interest rates for the first time in 2025, which could impact mortgage rates, bond yields, and boost crypto. Mortgage rates are tied more to Treasury yields than Fed moves. Cryptocurrency markets may benefit from lower interest rates as investors shift from low-yield bonds and savings to riskier assets.
As the Federal Reserve embarked on the second year of its rate-cutting cycle after its last cut in September 2024, historical data points to potentially significant gains for the S&P 500, with an average return of over 16% in the second year following initial cuts. However, a crucial caveat remains: these robust returns are contingent on the U.S. economy successfully sidestepping a recession.
The CNN Money Fear and Greed index showed a slight decline in the overall market sentiment, while the index remained in the ?Greed? zone on Wednesday. U.S. stocks settled mixed on Wednesday, with the Dow Jones index gaining more than 250 points during the session as the Federal Reserve implemented its first interest rate cut of the year.
On Wednesday, U.S. stocks closed mixed as the Dow Jones Industrial Average advanced 0.6% to 46,018.32. The S&P 500 slipped 0.1% to 6,600.35, while the Nasdaq fell 0.3% to 22,261.33.The Federal Reserve cut its benchmark rate by 25 basis points to 4.00%-4.25%, ending a nine-month pause and marking the fourth reduction in the current easing cycle.
US equities closed mixed Wednesday as Wall Street tracked Federal Reserve Chair Jerome Powell's remarks after the central bank delivered its first interest rate cut of 2025. The Dow Jones Industrial Average rose 0.6% to 46,018.3, while the Nasdaq Composite fell 0.3% to 22,261.3. The S&P 500 slipped 0.1% to 6,600.4. Among sectors, financials led gainers, while technology saw the biggest drop.
The Toronto Stock Exchange recovered more than 120 points over the last hour of trading Wednesday and closed modestly higher, buoyed by the prospect of at least one other interest rate cut coming from the Bank of Canada before the end of 2025.
US equity indexes were mixed after the close on Wednesday after the Federal Reserve lowered the federal funds rate target range by 25 basis points to 4% to 4.25% in line with market expectations.
Kayne Anderson Energy Infrastructure Fund, Inc. (KYN) announced today that it reached an agreement with institutional investors relating to a private placement of $100 million of senior unsecured notes. Net proceeds will be used to refinance existing leverage and for general corporate purposes.
Financial stocks were rising in late Wednesday afternoon trading, with the NYSE Financial Index up 0.9% and the Financial Select Sector SPDR Fund adding 1%. The Philadelphia Housing Index was decreasing 0.6%, and the Real Estate Select Sector SPDR Fund rose 0.3%. Bitcoin was declining 0.6% to $115,830, and the yield for 10-year US Treasuries rose 2.5 basis points to 4.05%. The Federal Reserve r...
US equity indexes were mixed ahead of the close on Wednesday after the US Federal Reserve trimmed the federal funds rate target range by 25 basis points to 4% to 4.25% in line with market expectations.
Financial stocks were rising in late Wednesday afternoon trading, with the NYSE Financial Index up 0.9% and the Financial Select Sector SPDR Fund adding 1%. The Philadelphia Housing Index was decreasing 0.6%, and the Real Estate Select Sector SPDR Fund rose 0.3%. Bitcoin was declining 0.6% to $115,830, and the yield for 10-year US Treasuries rose 2.5 basis points to 4.05%. The Federal Open Mark...
The Federal Reserve reduced its benchmark lending rate by 25 basis points Wednesday, noting increased downside risks to employment and signaling further policy easing later in 2025. The central bank's Federal Open Market Committee lowered interest rates to a range of 4% to 4.25%, in line with Wall Street's expectations.
West Texas Intermediate closed lower on Wednesday following three days of gains, sticking within the tight range it has mostly remained within for more than a month, even as a report showed a much larger than expected drop in U.S. oil inventories and the Federal Reserve cut U.S interest rates cut interest rates for the first time this year.
Shares of Rocket Companies Inc (RKT) are rising Wednesday afternoon after the Federal Reserve announced a quarter-point cut to its benchmark interest rate, bringing it to a range of 4.00% to 4.25%. This marks the fourth consecutive rate cut, signaling a more accommodating monetary policy that could boost the housing market. Why It Matters: For a mortgage-heavy business like Rocket, this is welcome news.
The Federal Reserve reduced its benchmark lending rate by 25 basis points Wednesday and said downside risks to employment have increased. The central bank's Federal Open Market Committee lowered interest rates to a range of 4% to 4.25%, in line with Wall Street's expectations.
The Federal Open Market Committee lowered the federal funds rate by 25 basis points at its meeting to a range of 4% to 4.25%, the FOMC's statement Wednesday afternoon showed.
After months of mounting pressure from President Donald Trump, the Federal Reserve on Wednesday cut its benchmark interest rate by 25 basis points to 4.00%-4.25%, delivering a widely expected move that ends a nine-month policy pause.
Housing starts fell by 8.5% to a 1.307 million annual rate in August, well below expectations, with single-family housing starts and multi-family starts both lower. Building permits fell by 3.7% to a 1.312 million rate in August. The number of homes under construction fell in the month, but completions surged, which should add to the supply of homes in the near term.
Financial stocks were rising in Wednesday afternoon trading, with the NYSE Financial Index and the Financial Select Sector SPDR Fund each adding 0.7%. The Philadelphia Housing Index was increasing 0.8%, and the Real Estate Select Sector SPDR Fund rose 0.6%. Bitcoin was declining 0.9% to $115,712, and the yield for 10-year US Treasuries was rising 3 basis points to 4.05%. Investors are awaiting ...
Financial stocks were advancing in Wednesday afternoon trading, with the NYSE Financial Index and the Financial Select Sector SPDR Fund each adding 0.7%. The Philadelphia Housing Index was increasing 0.8%, and the Real Estate Select Sector SPDR Fund rose 0.6%. Bitcoin was declining 0.9% to $115,712, and the yield for 10-year US Treasuries was rising 3 basis points to 4.05%. Investors are awaiti...
The Bank of Canada cut its overnight rate by 25bps to 2.0% on Wednesday, as widely expected by almost all and basically fully priced going in, said Scotiabank.
The Bank of Canada cut its policy rate by 25bps to 2.50% on Wednesday, in line with market expectations, said TD. The statement noted that "underlying inflation is running around 2.5%" and that the removal of retaliatory tariffs on imports from the United States "will mean less upward pressure on the prices of these goods going forward."
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.
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