AZ

Stocks pause as Fed rate-cut bets pressure dollar

Global stocks paused on Thursday after a blistering rally, while the U.S. dollar slid to a two-week low as traders bet the Federal Reserve will cut interest rates in September — and possibly by as much as 50 basis points.

MSCI’s Asia ex-Japan index hovered near its highest level since September 2021, tracking Wall Street gains that saw the S&P 500 and Nasdaq close at fresh records for a second straight day. Futures suggested a muted start for European and U.S. trading, News.Az reports, citing Reuters.

Rate-cut expectations were buoyed by recent U.S. jobs data and comments from Treasury Secretary Scott Bessent. Goldman Sachs now forecasts three quarter-point cuts this year and two more in 2026. CME FedWatch shows markets pricing in a near-certain September cut, with odds of a larger half-point move climbing to 7% from zero last week.

The Japanese yen strengthened to a three-week high after Bessent said the Bank of Japan is likely to keep raising rates. The yen also gained against the euro and pound.

Bitcoin jumped to a record $124,480.82, up 32% this year, with analysts citing easier U.S. monetary policy and financial reforms as tailwinds. Ether has gained 41% in 2025 and is nearing its November 2021 peak.

Gold inched higher, while oil prices steadied after a two-month low. Traders are watching Friday’s meeting between U.S. President Donald Trump and Russian President Vladimir Putin for potential implications on Ukraine and energy markets.

Investors now await U.S. producer price data later Thursday and retail sales figures on Friday, with weaker numbers likely to reinforce the rate-cut narrative.

 



News.Az 

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