US Equities Set to Rise as Fed Rate-Cut Bets Revive – Europe Market Wrap

US equities were poised to advance on Friday as the Federal Reserve’s policy-easing bets resurfaced, pushing Treasury yields lower.

S&P 500 futures jumped 0.4%, putting the underlying index on track for its biggest weekly rise since November’s election, while Nasdaq 100 futures rose 0.5%. Recent data and Fed officials’ comments indicate that the central bank will have room to lower interest rates this year. Ten-year Treasury rates dipped down, falling more than 15 basis points from recent multi-month highs.

Swap markets now expect the Fed to decrease rates by around 40 basis points this year, up from not pricing a single quarter-point change earlier this week.

Europe’s Stoxx 600 index also rose, on track for its best week since September. Basic resource shares led the way.

China-focused European sectors such as retail and auto also climbed after data suggested Beijing’s stimulus blitz is succeeding in shoring up economic growth.

Traders added to BoE easing bets, favouring three 25 BPS cuts in 2025 after weaker than expected Retail Sales data.