US stocks recover on higher Fed rate cut expectations

Thursday, 03. October 2019 17:31

United States stocks recovered from sharp losses from earlier in the session on Thursday on increased hopes the US Federal Reserve will further cut interest rates at its meeting in October.

Based on trading on the fed funds futures market, expectations for a new rate cut grew from 77% on Wednesday to 93.5% today on slowdown concerns fueled weak services data. Namely, the Institute for Supply Management's report showed that the ISM non-manufacturing index stood at a three-year low of 52.6% in September.

The Dow Jones was flat at 11:30 am ET. The Nasdaq 100 rose 0.50% at 11:30 am ET with PepsiCo surging 4.08% at 11:34 am ET after the company posted better-than-expected results for the third quarter. The S&P 500 gained 0.23% at 11:30 am ET. MarketAxess Holdings led the gains as its stock soared 4.93% at 11:34 am ET.

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Breaking the News / NP