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  • Writer's pictureLuke Holland

Foretelling Friday: Potential Fed Interest Rate Cuts

This week, all eyes are on the Fed as traders anticipate a potential interest rate cut.


Discussions from the last Fed meeting hinted at a 50bps cut in September, but after this morning's market turmoil—Asian markets down 13% and Nasdaq down 6% (at 6 am this morning)  following a Bank of Japan rate change—US traders now see a 60% chance of a 25bps cut this week.


Key impacts to watch include potential boosts to stock markets, especially growth stocks, a possible rally in bonds, and a weakening USD which could strengthen the ZAR.


Graph showing the US Nasdaq index performance, highlighting a significant drop of 6% as of August 5, 2024."

(US Nasdaq)



Graph depicting the Nikkei Japan index performance, illustrating a 13% decline as of August 5, 2024.

(Nikkei Japan)


Do you think the Fed will cut interest rates this week? Participate in our poll by visiting our social media platforms! We'd love to hear your thoughts.


Poll:

1. Will the Fed cut interest rates this week?

2. Will the Fed wait for September?

3. We won't see a rate cut this week or in September?


Stay informed and be ready to capitalise on these trends with Unum Capital. Get in contact with us at tradingdesk@unum.co.za to make sure you can capitalise on these movements.

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