Rate Cuts Revitalize Japanese Indices and U.S. Stock Futures: Japanese stocks rose alongside U.S. stock futures
after the Federal Reserve cut interest rates by half a percentage point, indicating further easing in the coming months.
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Jerome Powell Downplays Impact of Rate Cuts on Presidential Race Between Trump and Harris
Federal Reserve Chair Jerome Powell confirmed that the greater-than-expected rate cut on Wednesday
may have a limited impact on the presidential race between Vice President Kamala Harris and Donald Trump,
as the effects of the decision will slowly extend to the economy.
In a press conference following the significant rate cut—the first in four years—
Powell responded to reporters’ questions about the timing of the long-awaited rate cut,
with just 48 days until the November 5 elections: “The things we do affect economic conditions mostly with a lag.”
Rate Cuts Revitalize Japanese Indices and U.S. Stock Futures
Japanese stocks rose alongside U.S. stock futures after the Federal Reserve cut interest rates by half a percentage point,
indicating further easing in the coming months.
The Japanese “TOPIX” and “Nikkei 225” indices increased as the yen fell more than 1% against the dollar.
U.S. stock futures rose after the S&P 500 briefly touched a record high before closing down 0.3%.
Chinese and Australian stocks traded within a narrow range.
Oil Prices Rise Amid Improved Investor Sentiment and Rising Middle East Tensions
Oil prices increased due to a general improvement in financial markets following the Fed’s significant rate cut,
while traders monitored escalating tensions in the Middle East.
Brent crude futures rose to around $74 per barrel after closing nearly unchanged on Wednesday,
while West Texas Intermediate crude was above $71.
Stock prices in futures markets in Europe and Asia rose
after the Fed’s rate cut bolstered expectations that the U.S. economy would avoid a slowdown.
Investors are also closely watching developments in the Middle East
after Israeli Defense Minister Yoav Gallant announced what he described
as a “new phase” in the war with Islamic groups in the region.
The announcement raised concerns about the potential for a broader conflict that could involve Iran,
a member of the Organization of the Petroleum Exporting Countries (OPEC).
Rate Cuts Revitalize Japanese Indices and U.S. Stock Futures
