Stocks Firm, Dollar Sags As Market Ups Bets On Big Fed Cut

Global stocks edged up for a sixth consecutive day on Monday, during a week that is almost certain to mark the beginning of an easing cycle in the US. Investors now believe that the Federal Reserve may start with an outsized rate cut, Amanda Cooper and Wayne Cole reported for Reuters.

S&P 500 futures and Nasdaq futures dipped by 0.1%-0.2%, signaling a flat start for the benchmark indices. I Photo: New York Stock Exchange Facebook

The primary focus on Monday was the growing expectation that the Federal Reserve will cut interest rates by half a percentage point after its meeting this week.

The Fed is expected to do so in order to steer the economy toward a soft landing, amid signs of slowing job growth and moderating inflation. As European trading began, the MSCI All-World Index was on track for a sixth straight increase, up 0.1%.

The index has rallied 10% over the past six weeks, fueled by optimism surrounding a significant Fed rate cut.

S&P 500 futures and Nasdaq futures dipped by 0.1%-0.2%, signaling a flat start for the benchmark indices after the S&P 500 delivered its strongest weekly performance of the year last week.

In Europe, the STOXX 600 slipped 0.3% in early trading, as investors took profits following last week's 1% rally.

Meanwhile, economic data from China over the weekend revealed that industrial output growth slowed to a five-month low in August, with retail sales and new home prices also showing further weakening.