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US Markets Rebound: Fed Remarks and Oil Price Drop Halt Deeper Losses
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CNBC TV18•30-09-2026, 04:56
US Markets Rebound: Fed Remarks and Oil Price Drop Halt Deeper Losses
- •US benchmark indices recovered significantly on Tuesday, cutting losses despite an initial downturn.
- •New York Fed President John Williams indicated that a Federal Reserve rate hike could happen "later this year," reducing the immediate probability of an October hike from 70% to 50%.
- •Crude oil prices dropped, with Brent crude falling towards $103 a barrel, as supply fears eased due to increased exports from West Asia and the US releasing 40 million barrels from its Strategic Petroleum Reserves.
- •The 30-year US Treasury yield briefly crossed 5.6%, reaching its highest since 2002, before cooling off.
- •Upcoming economic data includes the Personal Consumption Expenditure (PCE) inflation figures, Q2 GDP estimates, and consumer spending data, with Minneapolis Fed President Neel Kashkari also scheduled to speak.
Key Questions Answered
Wall Street indices recovered from their daily lows due to comments from New York Fed President John Williams suggesting no immediate rush for a rate hike, alongside a drop in crude oil prices driven by easing supply concerns.
Following John Williams' remarks that one more rate hike could happen later this year without urgency, the probability of the FOMC raising rates in October dropped immediately from 70% to 50%.
Crude oil prices fell toward $103 a barrel because West Asia exports reached 98% of pre-war levels and the US announced the release of another 40 million barrels from its Strategic Petroleum Reserves.
