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. All rights reserved.
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