Fed rate cut bets are no more. | MarketTalk: What’s up today? | Swissquote

Show notes

Financial markets kicked off the week on a weak note, but not because of the Wagner’s mini, failed, or fake coup over the weekend, but because of the diminishing rate cut bets for the Federal Reserve (Fed) for this year - and the beginning of next year.
But the US 2-year yield slumped below a two-month rising trend this morning, as the 10-year yield remains paralyzed a touch below the 3.75% level. The dollar index hardly challenges the 50-100-DMA area, and the stock markets are down, with the S&P500 steadily giving back gains, while MAMAA stocks are seen most vulnerable to a further downside correction due to the recent AI-led rally. Small caps, on the other hand, were better bid this Monday, as a sign of a portfolio rebalancing effect before the quarter ends.
The softer US dollar maintains the EURUSD above the 50-DMA, near 1.0875.
Today, US durable goods orders and house prices will be under close watch while Canada will release the latest set of CPI data.
The barrel of US crude remains steady at around the $70pb level, bulls don’t want to join in given the hawkish central bank stances and rising recession odds, while bears are not willing to push hard, as the geopolitical uncertainties maintain a high level of upside risks.
Listen to find out more!