Latest news with #Fedwatch
CBS News
4 days ago
- Business
- CBS News
Have a CD account maturing right before interest rates are cut? Do this now.
Interest rate cuts, on hold for all of 2025, could soon become a reality again. After the Federal Reserve issued three reductions in the final months of 2024, the central bank elected to pause rates for the first eight months of the year, citing concerns over inflation and economic instability. But that could change in September, with the CME Group's Fedwatch tool currently listing a rate cut for the central bank's September 17 meeting at a 92% likelihood, approximately. And while that trajectory could change, it's increasingly looking likely that borrowers saddled with high rates may soon get some small but significant relief. But what about savers? Particularly those who locked in a high rate on a certificate of deposit (CD) account in recent years? A rate cut won't be nearly as helpful for this group, even if it's expected to be by just 25 basis points to start. Banks don't even need to wait for that cut to become official to start reducing the rates they offer to savers. And, if you have a CD account set to mature in this climate, you may be unsure of your next steps. But there are still constructive moves to make, before rate cuts are made official again. Below, we'll detail three moves worth making now. Start by seeing how high today's current CD interest rates are here now. While every saver's needs and approach may be different, many of those with a CD account set to mature now, right before rate cuts are issued again, could benefit from making the three moves below. Sure, CD interest rates are not as high as they were six months ago or at this point in 2024 but they're still relatively strong, with some of the better ones around 4.50% now. But don't just take the word of your current bank. Instead, shop around and check out the competition to see what's available elsewhere. You may be able to take advantage of online banks, for example, by taking out your maturing CD funds and transferring them there, instead. That said, a proactive approach is key here as you'll have a limited grace period before your account is automatically rolled over, which is something you'll want to avoid happening in what's expected to be a cooler rate climate. Shop for high-rate CD accounts online here. Can you even afford to lock your money away in a new CD account now? And, if you can, can you do so with the same amount of money? With rate cuts all but assured now, it may be advantageous to open a new account with a larger amount to maximize your interest earnings. Or you can keep the same amount but deposited into a new, long-term CD to earn even more over an extended period. If your budget has changed since you first opened your account, it's important to complete this re-evaluation now. Ideally, you can exploit today's still elevated rate climate while not overextending yourself. As mentioned, you'll have about a week to 10 days worth of a grace period to move your funds or risk having them automatically rollover into a new account. Once you've checked out the competition and closely examined your budget, then, you should let the bank know of your plans. It's possible that they'll want to keep your business and be willing to find a lucrative new home for your funds. Or they may not be. But communicating here is key, especially with the window of opportunity to lock in new, high-rate alternatives seemingly closing by the day. September rate cuts don't need to be the end of the interest-earning journey for CD account holders, even if their account is close to its maturity date. By taking the above, strategic steps now, before that deadline arrives, these savers can better ensure continued, long-term interest earning success, regardless of what ultimately happens in the interest rate climate.
RTHK
09-08-2025
- Business
- RTHK
US stocks hit new highs on tech and Fed optimism
US stocks hit new highs on tech and Fed optimism The tech-heavy Nasdaq posted a record closing high. File photo: Reuters US stocks ended higher and Nasdaq scored a record closing high for the second straight day on Friday as technology-related shares, including Apple, gained amid optimism about expectations for rate cuts this year. The three major indexes also registered gains for the week. Apple shares climbed, extending recent gains. Earlier this week, US President Donald Trump said Apple would invest an additional US$100 billion in the US, bringing its total commitment to US$600 billion over the next four years. The S&P 500 technology index also rose. Also helping the S&P 500, shares of Gilead Sciences rose after it raised its full-year financial outlook. With results in now from more than 450 of S&P 500 companies, estimated earnings growth for the second quarter was at 13.2 percent on Friday, up from 5.8 percent on July 1, according to LSEG. Recent weaker economic data has underpinned expectations for rate cuts, while investors are evaluating Trump's interim pick for a Federal Reserve governor. The president late in Thursday's session nominated Council of Economic Advisers Chair Stephen Miran to a short-term board seat following Adriana Kugler's abrupt exit last week, as he narrowed his shortlist to succeed Fed Chair Jerome Powell, whose term ends on May 15. Miran, who is often aligned with Trump, has previously suggested Powell was "too late" in lowering rates. Traders now peg about a 90 percent chance of the first rate cut hitting next month, according to CME Group's Fedwatch tool, with futures pointing to at least two cuts by year-end. The S&P 500 gained 49.45 points, or 0.78 percent, to end at 6,389.45 points, while the Nasdaq Composite gained 207.32 points, or 0.98 percent, to 21,450.02. The Dow Jones Industrial Average rose 206.97 points, or 0.47 percent, to 44,175.61. (Reuters)
RTHK
09-08-2025
- Business
- RTHK
US stocks hit new highs on tech and Fed optimism
US stocks hit new highs on tech and Fed optimism The tech-heavy Nasdaq posted a record closing high. File photo: Reuters US stocks ended higher and Nasdaq scored a record closing high for the second straight day on Friday as technology-related shares, including Apple, gained amid optimism about expectations for rate cuts this year. The three major indexes also registered gains for the week. Apple shares climbed, extending recent gains. Earlier this week, US President Donald Trump said Apple would invest an additional US$100 billion in the US, bringing its total commitment to US$600 billion over the next four years. The S&P 500 technology index also rose. Also helping the S&P 500, shares of Gilead Sciences rose after it raised its full-year financial outlook. With results in now from more than 450 of S&P 500 companies, estimated earnings growth for the second quarter was at 13.2 percent on Friday, up from 5.8 percent on July 1, according to LSEG. Recent weaker economic data has underpinned expectations for rate cuts, while investors are evaluating Trump's interim pick for a Federal Reserve governor. The president late in Thursday's session nominated Council of Economic Advisers Chair Stephen Miran to a short-term board seat following Adriana Kugler's abrupt exit last week, as he narrowed his shortlist to succeed Fed Chair Jerome Powell, whose term ends on May 15. Miran, who is often aligned with Trump, has previously suggested Powell was "too late" in lowering rates. Traders now peg about a 90 percent chance of the first rate cut hitting next month, according to CME Group's Fedwatch tool, with futures pointing to at least two cuts by year-end. The S&P 500 gained 49.45 points, or 0.78 percent, to end at 6,389.45 points, while the Nasdaq Composite gained 207.32 points, or 0.98 percent, to 21,450.02. The Dow Jones Industrial Average rose 206.97 points, or 0.47 percent, to 44,175.61. (Reuters)
Business Recorder
04-07-2025
- Business
- Business Recorder
S&P 500, Nasdaq close at records on jobs data
NEW YORK: The S&P 500 and the Nasdaq closed at record highs on Thursday after a stronger-than-expected US jobs report, while Nvidia shares spiked and its valuation neared $4 trillion. Traders quickly priced out chances of an interest-rate cut in July, with the odds of a 25-basis-point reduction in September at 68%, according to CME Group's Fedwatch tool, down from 74% a week ago. 'We are seeing a real bout of irrational exuberance, the stock market is very biased towards optimism,' said Kristina Hooper, Chief Market Strategist at Man Group in New York. 'But there's some basis for it. I think there is some level of relief, because the jobs report was not what could have been'. Unofficially, the Dow Jones Industrial Average rose 344.11 points, or 0.77%, to 44,828.53, the S&P 500 rose 51.94 points, or 0.83%, to 6,279.36 and the Nasdaq Composite rose 207.97 points, or 1.02%, to 20,601.10. Nvidia's market capitalization neared $4 trillion. Data showed nonfarm payrolls increased by 147,000 jobs last month, 33% more than the 110,000 jobs forecasted by economists polled by Reuters. Unemployment fell to 4.1% last month, a better result than the 4.3% expected. The report was released a day early because of the Independence Day holiday on Friday. Trading volumes were lighter than usual on Thursday with markets due to close early, at 1 p.m. ET. Separate data showed the number of Americans filing new applications for jobless benefits fell to a six-week low last week and US services sector activity picked up in June as orders rebounded but employment contracted for the third time this year, underlining the impact of policy uncertainty on businesses. Meanwhile, Republicans in the US House of Representatives advanced President Donald Trump's massive tax-cut and spending bill toward a final yes-or-no vote, appearing to overcome internal party divisions over its cost. The legislation is expected to add $3.4 trillion to the nation's $36.2 trillion in debt over the next decade, according to nonpartisan analysts. TripAdvisor climbed after the Wall Street Journal reported activist investor Starboard Value had built a more than 9% stake in the online travel company. Datadog jumped after the cloud security firm was set to replace Juniper Networks on the S&P 500.
Perth Now
03-07-2025
- Business
- Perth Now
S&P 500, Nasdaq new record highs on strong labour data
The S&P 500 and the Nasdaq have touched fresh record highs after a stronger-than-expected jobs report pointed to a resilient labour market amid concerns about US President Donald Trump's tariff policies potentially weighing on the economy. Nvidia was trading at a record high, up 2.2 per cent, and was track to become the most valuable company in history, with the chipmaker's market capitalisation nearing $US4 trillion ($A6.1trillion). Data showed nonfarm payrolls increased by 147,000 jobs last month after an upwardly revised 144,000 advance in May, while economists polled by Reuters had forecast payrolls rising 110,000. Unemployment fell to 4.1 per cent last month, against expectations of a rise to 4.3 per cent. "We were all expecting the hard data would start to show some cracks, and we really haven't seen that with the jobs report coming in much better than expected," said Brian Klimke, chief market strategist at Cetera Investment Management LLC. "That just puts the Fed on pause and gives it more time to wait right now because the labour market is really resilient." Traders quickly priced out chances of an interest-rate cut in July, with the odds of a 25-basis-point reduction in September at 69.2 per cent, according to CME Group's Fedwatch tool, down from 74 per cent a week ago. The data was released a day early because of the Independence Day holiday on Friday. Trading volumes were lighter than usual on Thursday with markets due to close early. Another dataset showed the number of Americans filing new applications for jobless benefits fell to a six-week low last week. US services sector activity picked up in June as orders rebounded but employment contracted for the third time this year, underlining the impact of policy uncertainty on businesses. The S&P 500 and Nasdaq extended their record-winning session as signs of a resilient economy and easing trade tensions following a series of agreements between the United States and other countries continue to propel stocks higher. Meanwhile, the blue-chip Dow was just 0.8 per cent below all-time highs touched in December. All three main indexes were on track to end the holiday-truncated week on a positive note, if gains hold. Meanwhile, Republicans in the US House of Representatives advanced President Donald Trump's massive tax-cut and spending bill toward a final yes-or-no vote, appearing to overcome internal party divisions over its cost. The legislation is expected to add $US3.4 trillion ($A5.2 trillion) to the nation's $US36.2 trillion ($A55.1 trillion) in debt over the next decade, according to nonpartisan analysts. In early trading on Thursday, the Dow Jones Industrial Average rose 284.02 points, or 0.64 per cent, to 44,769.03, the S&P 500 gained 41.23 points, or 0.67 per cent, to 6,268.65, and the Nasdaq Composite gained 161.74 points, or 0.79 per cent, to 20,554.87. Shares of chip design software firms Synopsys and Cadence Design Systems climbed three per cent and 3.7 per cent, respectively, in premarket trading after the US lifted export restrictions on chip design software to China, signaling a thaw in trade tensions between the world's top two economies. Tripadvisor climbed 15 per cent after the Wall Street Journal reported activist investor Starboard Value had built a more than nine per cent stake in the online travel company. Datadog jumped 9.4 per cent after the cloud security firm was set to replace Juniper Networks on the S&P 500. US solar stocks jumped in early trading, with First Solar rising about 10 per cent to become the top-performing individual stock on the S&P 500 index. Advancing issues outnumbered decliners by a 2.53-to-1 ratio on the NYSE, and by a 2.29-to-1 ratio on the Nasdaq. The S&P 500 posted 36 new 52-week highs and one new low, while the Nasdaq Composite recorded 85 new highs and 13 new lows.
