December S&P 500 E-Mini futures (ESZ24) are up +0.40%, and December Nasdaq 100 E-Mini futures (NQZ24) are up +0.52% this morning, partially rebounding from yesterday’s dramatic selloff after the Federal Reserve forecast fewer interest rate cuts next year, while investors awaited a raft of U.S. economic data and an earnings report from the world’s largest shoemaker Nike.
As widely expected, the Federal Reserve lowered its benchmark interest rate by a quarter percentage point yesterday. The Federal Open Market Committee voted 11-1 to reduce the federal funds rate to a range of 4.25% to 4.50%, marking its third consecutive rate cut. The central bank stated that while inflation has moved closer to the 2% target, it remains “somewhat elevated,” and labor market conditions have “generally eased.” The Fed’s updated Summary of Economic Projections showed that officials now anticipate the benchmark rate reaching a range of 3.75% to 4.00% by the end of 2025, implying only two quarter-percentage-point cuts, compared to the four cuts projected in September. “In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the committee will carefully assess incoming data, the evolving outlook, and the balance of risks,” the FOMC’s statement said.
