US stock futures stall as strong payrolls report dampens rate cut expectations

From Investing.com: 2024-10-07 20:17:39

U.S. stock index futures stall after strong payrolls report casts doubt on Fed rate cut. Inflation data awaited this week, with any signs of sticky inflation likely to damage rate cut expectations. Wall Street indexes decline as traders push back on expectations for significant rate cut by Fed, other negative factors weigh in.

Investors cut expectations for rate cut after bumper payrolls report. Traders now pricing in 80.9% chance Fed will cut rates by 25 bps in November, 19.1% chance no rate cut at all. Higher terminal rate seen for Fed’s current easing cycle after September rate cut.

Wall Street registers losses as expectations for rate cut shrink. Technology stocks bear the brunt of selling, with Google ordered to revamp Android app store, negative analyst comments on Amazon and Apple fueling further sell-off. Middle East tensions and impending hurricane Milton add to risk sentiment concerns.

Wall Street clocks significant losses on smaller rate cut bets. Major banks expected to report earnings later this week as third-quarter earnings season begins. Street retreats from record highs, stormy weather and geopolitical tensions add to negative sentiment. Fed minutes and inflation data awaited.



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