Nikkei Soars Past 43,000 as Asian Markets Rally—Traders Bet Big (94%) on Fed Rate Cuts

Asian equities surge—led by Japan's Nikkei breaching 43,000—as markets price in near-certain Fed easing. Here's why Wall Street's 'pivot' gamble smells like recaffeinated hopium.

The Domino Effect: Risk appetite floods back as traders lock in a 94% probability of a Fed cut—because nothing says 'stable monetary policy' like front-running the central bank.

Tech-Led Charge: Semiconductor and AI plays lead the rally, proving once again that markets will mainline any narrative that rhymes with 'liquidity.'

Cynic's Corner: Another day, another speculative frenzy dressed up as 'pricing in fundamentals.' At least this time they bothered with a percentage.

The S&P 500 closed at a high

In New York, the S&P 500 and the Nasdaq closed at all-time highs after President TRUMP signed an executive order that pauses triple-digit tariffs on Chinese goods for another 90 days.

Traders now see a 94% chance of a Fed cut in September, up from nearly 86% the prior day and about 57% a month ago, according to the CME FedWatch tool.

Investors were especially alert to the inflation print because it followed a weaker-than-expected jobs report on August 1, a combination that had stirred talk about stagflation risks.

Politics around the central bank also drew notice. Trump nominated WHITE House adviser Stephen Miran to temporarily fill an open seat on the Federal Reserve’s Board of Governors, prompting fresh debate over potential White House sway on monetary policy.

Separately, the White House said it was “the plan” for the Bureau of Labor Statistics to keep releasing its monthly employment report after Trump’s choice to lead the agency, E.J. Antoni, had proposed suspending its publication.

Dollar remained little changed

In currency trading, the dollar was little changed at 147.84 yen. The euro edged up 0.1% to $1.1684 after a 0.5% jump the previous session, as reported by Cryptopolitan earlier. The dollar index, which tracks the greenback against major peers, fell for a second straight day.

In crypto markets, ether touched $4,634.70 in early dealings, the highest since December 2021, before easing 0.9%.

Energy and metals were quiet. U.S. crude slipped 0.05% to $63.14 a barrel. Spot Gold was steady at $3,348.1 per ounce.

Looking to Europe, futures pointed to a positive open. Euro Stoxx 50 futures were up 0.2%, Germany’s DAX futures ROSE 0.3%, and FTSE futures gained 0.1%. U.S. equity futures were flat, with S&P 500 e-minis little changed.

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