SPY, QQQ Rebound as Fed Rate Cut Odds Soar After Williams’ Comments
Market sentiment shifted sharply on Friday as Federal Reserve Bank of New York President John Williams hinted at potential rate cuts, sparking rallies in both the S&P 500 ETF (SPY) and Nasdaq 100 ETF (QQQ). Williams, a key Powell ally, described current rates as "moderately restrictive" and suggested further adjustments could align policy with neutral levels.
The remarks come amid growing division among FOMC voters, with five members now supporting cuts and five favoring unchanged rates. This policy uncertainty unfolds against the unusual cancellation of October's CPI report by the Bureau of Labor Statistics, removing a key data point from the Fed's decision-making framework.