By John Meyer, consultant in financial affairs – Eurasia Business News, August 13, 2025. Article no. 1706
Today, August 13, stock markets are showing gains driven by optimism about an upcoming Federal Reserve interest rate cut.
Dow futures are rising, along with global equity markets, as recent U.S. inflation data has heightened expectations that the Fed will resume cutting rates in September.
This sentiment is supported by solid performance in the S&P 500 and Nasdaq, both hitting record highs recently.
Dow futures are up slightly this morning, continuing the trend from recent days where U.S. stock futures showed modest gains. More gains are expected later today.
Global stocks in Europe and Asia are also rising, with major indices such as the pan-European Stoxx Europe 600, France’s CAC 40, Germany’s DAX, and the U.K.’s FTSE 100 all posting gains.
Treasury yields have weakened, especially on short-term notes like the two-year Treasury, which is sensitive to monetary policy changes. This yield drop aligns with traders pricing in nearly a 90% probability of a Fed rate cut at the September meeting.
The U.S. dollar has weakened against several major currencies, reflecting the market’s anticipation of Fed easing. The dollar index is down by about 0.4%-0.5%, hitting a two-week low.
Market focus remains sharp on key upcoming U.S. economic data, including weekly jobless claims and retail sales for July, as these will influence the Fed decision.
Investor hopes for a Fed rate cut are fueled by mild inflation readings for July, where core inflation increased but not as sharply as feared, reducing concerns of tariff-induced price surges.
The gold market remains firmly supported above $3,300, and ING says it’s only a matter of time before prices break out of consolidation and retest record highs.
Read also : Gold : Build Your Wealth and Freedom
Today’s market activity is dominated by growing confidence in Fed rate cuts, with global stock indices climbing, weaker Treasury yields, and a sliding U.S. dollar reflecting these expectations. This environment supports a positive outlook for equity investors ahead of the Federal Reserve’s September meeting.
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© Copyright 2025 – Eurasia Business News. Article no. 1706
Eurasia Business News 