What drove stock market’s record-breaking week? Don’t overlook growing rate-cut expectations.
Key Takeaways
Friday’s rally in U.S. stocks, which sent the S&P 500 to an intraday record high, was getting help from solidifying expectations of traders around the likelihood of at least three quarter-point rate c...
Article Overview
Quick insights and key information
2 min read
Estimated completion
investment
Article classification
June 27, 2025
05:01 PM
MarketWatch
Original publisher
Advanced ➔ Results Market ExtraWhat drove stock market’s record- week
Don’t overlook growing rate-cut expectations
Published: June 27, 2025 at 1:01 p
ETResizeListen(5 min)Expectations that President Donald Trump may name a successor to Federal Reserve Chair Jerome Powell within a matter of months were helping to fuel 2025 rate-cut expectations on Friday
Photo: Saul Loeb/Agence France-Presse/Getty ImagesFriday’s rally in U
Stocks, which sent the S&P 500 to an intraday record high, was getting help from solidifying expectations of traders around the lihood of at least three quarter-point rate cuts from the Federal Reserve by year-end
Fed-funds futures traders currently see a 56. 3% chance that the central bank will lower interest rates in three or four quarter-point increments by December, which would bring the Fed’s main policy-rate target down to either between 3. 5%, according to the CME FedWatch Tool
This compares with a 30. 8% lihood seen a week ago, and would imply more 2025 rate cuts than the central bank flagged last week. the Author Vivien Lou ChenVivien Lou Chen is a Reporter for MarketWatch
You can her on Twitter @vivienlouchen
Show Conversation (0) Copyright © 2025 MarketWatch, Inc
Terms of Use DPrivacy NoticeCookie Notice MarketWatchCustomer CenterNewsroom RosterVirtual Stock ExchangeMarketWatch GuidesCopyright PolicyManage NotificationsCancel My SubscriptionCompanyDow JonesCode of ConductCorrectionsRes & LicensingDigital Self ServiceYour Ad ChoicesCorporate SubscriptionsAccessibilityDow Jones NetworkThe Wall Street JournalBarron'sInvestor's DailyBigChartsFinancial News Londonrealtor
ComMansion GlobalDow Jones Smart MoneyIntraday Data vided by FACTSET and subject to terms of use
Historical and current end-of-day data vided by FACTSET
All quotes are in local exchange time
Real-time last sale data for U
Stock quotes reflect trades reported through Nasdaq only
Intraday data delayed at least 15 minutes or per exchange requirements.
Related Articles
More insights from FinancialBooklet