The next big market catalyst after Nvidia: September Fed decision

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A September rate cut could boost the S&P 500's return by more than 5% in the next six months, Barclays said.

Nvidia has been the talk of the town this week. The next major catalyst for Wall Street is around the corner, however. The Federal Reserve is set to hold its next monetary policy meeting in September. The consensus is for the Fed to cut rates by at least a quarter percentage point , according to the CME Group's FedWatch tool. Investors have been clamoring for lower rates from the central bank, as worries of slowing economic growth and easing inflation permeate through the Street.

"US equities have historically staged impressive rallies when cutting cycles have begun in the absence of recessions, which, barring any surprises in the near term, should be the case this time round," global derivatives strategist Stefano Pascale wrote. The next clue investors will get on the future path of monetary policy will come Friday in the form of the July personal consumptions expenditure price index reading. But regardless of its outcome, B.

 

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Stocks rally before the Fed decision as Nvidia soars 10% to lead chip comeback: Live updatesStocks rose Wednesday as investors parsed the latest earnings reports and readied for the Federal Reserve monetary policy decision.
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