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Wall Street Edges Higher as Fed Rate Cut Decision Looms

U.S. stock futures were mixed but leaning higher on Monday as investors braced for a pivotal Federal Reserve policy meeting later this week. The Dow Jones Industrial Average futures rose about 0.2%, S&P 500 futures held near flat, and Nasdaq 100 futures dipped slightly after the tech-heavy index notched a fresh record last week. The rally has been fueled by growing expectations that the Fed will cut interest rates on Wednesday, with traders pricing in a 96% chance of a quarter-point reduction and a slim possibility of a larger 50-basis-point move. A cooling labor market — with unemployment at 4.3% and job growth slowing — has strengthened the case for policy easing. Tech stocks remain in focus, with Nvidia sliding over 2% after China’s antitrust regulator said the chipmaker violated competition laws. The news comes amid high-level U.S.-China trade talks in Madrid, adding a layer of geopolitical uncertainty to market sentiment. Despite the cautious tone, optimism around artifici...
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Canada and U.S. Set to Cut Rates as Economic Pressures Diverge



The Bank of Canada (BoC) and the U.S. Federal Reserve are both expected to resume interest rate cuts this week, marking a coordinated shift in monetary policy — but for very different reasons.

Economists widely anticipate the BoC will lower its benchmark rate by 25 basis points on Wednesday, restarting its easing cycle after a summer pause. Canada’s economy has shown clear signs of strain, with GDP contracting 1.6% in the second quarter, unemployment climbing to a nine-year high outside the pandemic, and trade headwinds from U.S. tariffs weighing on growth. With inflation near the 2% target and excess capacity in the economy, Governor Tiff Macklem is seen as having room to act — and possibly signal more cuts ahead.

The U.S. Federal Reserve is also expected to trim rates by a quarter point, though its move is aimed more at aligning policy with a neutral stance than addressing urgent weakness. While payroll growth has slowed, unemployment remains near long-run estimates and wage growth has recently accelerated.

Markets are already reacting: bond yields have fallen in both countries, mortgage rates are edging lower, and traders are betting on further easing into 2026. Still, analysts caution that while the timing may align, the motivations — and the pace — of cuts will likely diverge between Ottawa and Washington.


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