3 data points that could impact how big of a Fed rate cut the market gets next month

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The recent data certainly supports the idea of a rate cut at the Fed's mid-September meeting,

Following cooler-than-expected producer price data Tuesday morning, the market's 50/50 odds between a quarter-point Federal Reserve interest rate cut in September and a half-point cut tilted further toward the bigger move. That sparked a big rally in stocks, with the Nasdaq leading the way higher and jumping more than 2% in afternoon trading. Here are the details of three important data points that can help us gauge the health of the U.S. economy and whether companies can continue to thrive.

People walk along Wall Street outside of the New York Stock Exchange on August 05, 2024, in New York City.Following cooler-than-expected producer price data Tuesday morning, the market's 50/50 odds between a quarter-point Federal Reserve interest rate cut in September and a half-point cut tilted further toward the bigger move. That sparked a big rally in stocks, with theleading the way higher and jumping more than 2% in afternoon trading.

 

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