Investment
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What drove stock market’s record-breaking week? Don’t overlook growing rate-cut expectations.

June 27, 2025
05:01 PM
2 min read
AI Enhanced
businessmarketsmoneystocksfinancialtechnologyconsumer discretionarymarket cycles

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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...

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2 min read

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investment

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Published

June 27, 2025

05:01 PM

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MarketWatch

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Key Topics
businessmarketsmoneystocksfinancialtechnologyconsumer discretionarymarket cycles

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

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