The Federal Reserve is widely expected to lower its benchmark rate by 25 basis points today, with investors eyeing not just the move itself but signals on how far policymakers are willing to go amid heightened political pressure.
The Bloomberg Dollar Spot Index slumped to its lowest in three years, erasing gains accumulated since the Fed’s last tightening cycle began. The euro closed above $1.18 for the first time since 2021, underscoring the greenback’s broad weakness.
In Asia, Hong Kong equities surged, with the Hang Seng Index jumping 5% in its strongest session in months. A wave of buying in Chinese technology shares lifted the Hang Seng Tech Index to its highest close in four years, surpassing its March peak. Baidu led the charge, soaring 16% to its highest since 2023.
Meanwhile, in a major development for the social media landscape, a consortium led by Oracle reached an agreement to acquire TikTok’s US operations, easing regulatory uncertainties around the platform.
US equities paused after a strong run, with traders awaiting clarity from the Fed. While a 25-basis-point cut is largely priced in, markets are looking for a dovish signal to confirm expectations of deeper easing ahead.
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