Wall Street braced for equity rally as Fed hike confirmed
Investors in the United States priced a near-certain 25-basis-point Federal Reserve rate increase on 14 September, and analysts said the move could lift equities by easing bond-market pressures. The sentiment was reflected in Wall Street futures, which edged higher despite the anticipated tightening. Earlier in September, a rise in producer-price data and steady jobless claims pushed market estimates of a Fed hike to about 70 %, according to Yahoo Finance.
Subsequent releases showed the August consumer price index up 0. 4 % month-on-month and 3. 4 % year-on-year, matching forecasts, and Reuters and CBS News noted that the probability of a rate increase rose to roughly 90 % ahead of the September meeting.