Market Rally Signals Bet on Federal Reserve Rate Cuts
HT
Hugo Thorne
Fed interest rate decision · Apr 17, 2026
Source: DojiDoji Data Terminal
Investors are wagering that the Federal Reserve will resume interest-rate cuts before the end of the year. This expectation follows a decline in oil prices and bond yields after Iran Foreign Affairs Minister Abbas Araghchi announced commercial vessels would be allowed to pass through the Strait of Hormuz.
The reopening of the Strait, triggered by a truce between Israel and Lebanon, eases the oil shock that has weighed on the global outlook since President Donald Trump initiated the conflict seven weeks ago. The move was subsequently confirmed by Trump.
Equity markets responded with a sharp rebound. The S&P 500 advanced 0.8% to another record, while the Dow Jones Industrial Average climbed 1.4% and the Nasdaq 100 added 0.7%.
According to Paul Stanley, chief investment officer at Granite Bay Wealth Management, this is the first Friday session in over a month without the typical risk-off positioning heading into the weekend. This shift suggests the recent market correction has likely run its course.
The S&P 500 has risen in all but one session this month. The Nasdaq 100 is on track for a 13-day winning streak, its longest since 2013.
Fed interest rate decision
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