Dow Jones Nears Record High Ahead of Fed Decision as China Restricts Nvidia
The Dow Jones Industrial Average climbed Wednesday, hovering within 1% of its all-time peak as markets priced in a near-certain 25 basis point Fed rate cut. CME's FedWatch tool assigns 94% probability to a quarter-point reduction, with only a 6% chance of a more aggressive 50bps move. The 2pm ET press conference will scrutinize Jerome Powell's tone—whether dovish (prioritizing growth) or hawkish (curbing inflation)—for clues on future policy trajectory.
Meanwhile, the US housing market shows strain. August housing starts plummeted 8.5% monthly to 1.307 million annualized, missing forecasts and marking the weakest reading since May. Single-family starts fell 7% to 890,000 units, amplifying concerns that only sustained rate relief can revive the sector.
