Wall Street Eyes Rate Cut as Markets Brace for Fed Decision

Wall Street anticipated a slight rise in opening trades on Friday as investors reconsidered a potential interest rate cut by the Federal Reserve next week. The market's focus shifted amid varying predictions about the rate cut's size, while Boeing's decline and several corporate reactions added to the volatility.

Wall Street is poised for a modest uptick in opening trades on Friday, as investors reassess the likelihood of a more substantial interest rate cut by the Federal Reserve scheduled for next week. The planemaker Boeing's stock dipped following a strike by its factory workers, adding to market uncertainties.

The probability of a 50-basis point rate cut surged overnight, now at 43%, up from 14% on Thursday, according to CME's FedWatch Tool. Former New York Fed President Bill Dudley indicated a favorable case for a 50-bps cut, adding to the mixed signals shared by various media outlets.

Deutsche Bank analysts noted that recent publications in the Wall Street Journal and the Financial Times have prompted markets to reconsider their expectations. The U.S. dollar weakened against major currencies, while government bond yields experienced a downward trend. Market predictions of the Fed sticking with a smaller 25-bps cut were bolstered by a slight increase in producer prices data.

(With inputs from agencies.)