Key Facts
• On September 8, the S&P 500 index slightly rebounded, nearing record highs.
• Markets anticipate the Federal Reserve to cut rates during next week’s FOMC meeting.
• Analysts expect three rate cuts by year-end, with a 0.25% cut already priced in.
• August Core CPI, expected to rise 0.3%, will be released on September 11.
• U.S. Treasury yields fell, with 2-year yields at their lowest since 2022.
• The dollar weakened following disappointing U.S. jobs data; yen briefly hit 147.34.
• Oil prices rose 0.6% (WTI) and 0.8% (Brent) after OPEC+ agreed on modest output hikes.
• Gold prices surged to a record $3,646 per ounce amid heightened rate cut expectations.
• Deutsche Bank notes S&P 500 could rise up to 50% in non-recession rate cut cycles.
• Saudi Arabia lowered October oil prices for Asia, signaling weaker demand expectations.
Summary
The U.S. stock market saw a slight rebound on September 8, with the S&P 500 nearing record highs. Anticipation of Federal Reserve rate cuts during the upcoming FOMC meeting has fueled optimism, despite signs of economic slowdown. Analysts expect three rate cuts by year-end, with a 0.25% reduction already priced in. Treasury yields fell, and the dollar weakened following disappointing jobs data. Meanwhile, oil prices rose modestly after OPEC+ agreed to a small production increase, while gold surged to a record high of $3,646 per ounce amid rate cut expectations. The yen stabilized after initial declines linked to political developments in Japan. Analysts suggest that non-recession rate cut cycles could lead to significant stock market gains, with Deutsche Bank projecting up to a 50% rise in the S&P 500 over two years. Key economic data, including the August Core CPI, will be closely watched in the coming days.
