From Dow Jones & Company:

Traders are expecting up to seven quarter-point rate cuts from the Federal Reserve this year, although policy makers have only forecasted three. The stock market rallied at the end of last year on the Fed’s forecast but shifted slightly when officials pushed back on expectations for lower borrowing costs. Currently, fed funds futures traders are factoring in a 90.3% likelihood of five to seven quarter-point cuts by the end of the year. Stocks fares mostly lower as bond yields saw their biggest one-day jumps in almost a month. The outcome of the last Fed meeting has heightened expectations for rate-cutting.



Read more: How December Fed minutes could shake up investors’ rate-cut expectations