Todd Bishop
Interest rate cuts are expected to fall, the Dow fell 116 points to 26,806 points; the S&P 500 index fell 14. points to 2,975 points; the Nasdaq fell 63 points to 8098 points.
Apple (AAPL) closed down 2.1%, becoming the biggest loser in the Dow. The technology sector also generally declined. Google’s parent company, Alphabet (GOOG, GOOGL), fell about 1.4%. In addition, German banking giant Deutsche Bank (DB) closed down 6.1%. The company recently announced a comprehensive restructuring plan, ready to withdraw from investment banking, will lay off 18,000 before 2022 and abandon the stock sales and trading department.
On July 8, the US stock market continued to pay attention to the Fed’s interest rate cut prospects. Fed policymakers will hold a monetary policy meeting at the end of this month.
The market’s expectation of the Fed’s aggressive policy of relaxation has cooled. According to the Fed Watch tool of the Chicago Mercantile Exchange, the probability of the Fed’s interest rate cut in July is still 100%, but the forecast of a 50 basis point cut is expected to fall to 4.9%, and the forecast of a 25 basis point drop to 95.1%.
