JPMorgan, Citi See Fed Dealing Two Supersized Cuts This Year

(Bloomberg) -- Wall Street banks are calling for aggressive interest-rate cuts by the Federal Reserve based on the latest evidence that the labor market is cooling. Most Read from BloombergSinger Akon’s Multibillion-Dollar Futuristic City in Africa Gets Final NoticeValencia Follows Barcelona in Crackdown on Short-Term RentalsWhat a Beautiful Bus Stop Can DoA Vast Wetland Park Seeks to Slake a Thirsty MegacityUber and Lyft Strike NYC Deal to Scale Back Driver LockoutsEconomists at Bank of America

Oil Falls to Seven-Month Low as Demand Fears Overwhelm War Risks

(Bloomberg) -- Oil slumped to the lowest in almost seven months as concerns about demand in the world’s two biggest economies overshadowed heightened geopolitical risk.Most Read from BloombergSinger Akon’s Multibillion-Dollar Futuristic City in Africa Gets Final NoticeValencia Follows Barcelona in Crackdown on Short-Term RentalsWhat a Beautiful Bus Stop Can DoA Vast Wetland Park Seeks to Slake a Thirsty MegacityUber and Lyft Strike NYC Deal to Scale Back Driver LockoutsBrent crude slid 3.4% to s

Four reasons to take a breath after the U.S. jobs report

The disappointing U.S. employment report for July unleashed a "Freakout Friday" moment in financial markets and triggered a wholesale resetting of expectations for how much the Federal Reserve might cut interest rates next month. There was much to grimace about in the Bureau of Labor Statistics report card on the job market, including a jump in the unemployment rate to a post-pandemic high and the weakest pace of private-sector hiring in 16 months. The BLS added a big footnote to the first page of Friday's release to say Hurricane Beryl - which slammed into Texas during the employment report survey week and left some 2.7 million homes and businesses in the Houston area without power for days - "had no discernible effect" on the month's data.

Bank of England Narrowly Votes for 25-Bps Cut – GBP, Gilts Little Changed

EUR/USD IG Client Sentiment: Our data shows traders are now net-long EUR/USD for the first time since Jul 03, 2024 when EUR/USD traded near 1.08.

FTSE 100 and S&P 500 higher, but Nikkei 225 drops back

While the FTSE 100 and S&P 500 have powered higher, the Nikkei 225 has given back its gains from the aftermath of the Bank of Japan decision.

Retail Sentiment Analysis – EUR/USD, USD/JPY Latest

Traders boost bets Fed goes big on Sept rate cut

But as Powell during his post-meeting news conference repeatedly said the central bank has room to respond if the labor market unexpectedly weakens, markets began a turn. Rate futures prices now reflect about a 17% chance of a 50-basis point rate cut in September, versus about 5% before Powell began speaking. Prices also reflect increased confidence the Fed will cut a total of 75 basis points over its final three meetings of the year, most likely in 25-basis-point increments, bringing the policy rate down to a 4.5%-4.75% range.

Gold, Oil Rally Sharply as Middle East Tensions Escalate; US FOMC, NFPs Near

Stock market news today: S&P 500 futures jump as techs rebound in countdown to Fed