Major players on Wall Street have changed their rate cut bets after a weak jobs report. Here's what's happening ยน:
- *Morgan Stanley, Bank of America, and Oxford Economics* now expect 3 rate cuts between September and November ๐
- *99% probability of a 25 basis point cut* on September 17, with a 12% chance of a 50 basis point cut โฐ
- *Bank of America's new forecast* includes 5 more cuts into 2026, starting with 25 basis point cuts in September and December ๐
*Market Reaction:*
- 10-year Treasury yield sank by 10 basis points to 4.076% ๐
- Gold hit a record high of $3,644.90 per ounce, rising 1% on the day ๐
*Expert Insights:*
- *Ian Lyngen (BMO)*: The jobs report was "disappointing" and may lead to a 50 basis point cut on September 17 ๐ค
- *Saira Malik (Nuveen)*: The Fed has the greenlight to cut by 25 basis points, with 50 basis points of rate cuts on the table ๐ธ
- *Jeff Schulze (ClearBridge Investments)*: Job creation is "at stall speed," supporting additional and faster rate cuts beyond September ๐จ
*Hashtags:* #FedRateCut #WallStreet #EconomicNews #RateCutExpectations #MarketAlert
