U.S. Markets closed

Stock market will be sorely disappointed by a Fed rate cut

Samantha LaDuc
Stock market will be sorely disappointed by a Fed rate cut

In lieu of a big stock-market selloff on global economic growth slowdown and trade jitters, the market seems to still be expecting the “Art of the Deal” from Donald Trump on China and/or the Federal Reserve cutting interest rates 0.75 percentage points this year — which ever comes first. During that time, however, trade wars and tariff threats have escalated, tankers have been torpedoed, and safe-haven plays of Treasurys (BX:TMUBMUSD10Y) gold (GC00) and the U.S. dollar (DXY)  have been strongly bid. Big picture: Market participants want to believe this is 1995 — when the Fed cut rates the same day in July as the stock market set a record.