{"id":52731,"date":"2025-09-05T09:38:39","date_gmt":"2025-09-05T13:38:39","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/market-reacts-to-fed-rate-cut-prospects-hassetts-economic-outlook-and-opec-supply-boost\/52731\/"},"modified":"2025-09-05T09:38:39","modified_gmt":"2025-09-05T13:38:39","slug":"market-reacts-to-fed-rate-cut-prospects-hassetts-economic-outlook-and-opec-supply-boost","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/market-reacts-to-fed-rate-cut-prospects-hassetts-economic-outlook-and-opec-supply-boost\/52731\/","title":{"rendered":"Market Reacts to Fed Rate Cut Prospects, Hassett&#8217;s Economic Outlook, and OPEC+ Supply Boost"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Traders are now pricing in a near 100% chance of a 25-basis-point Federal Reserve rate cut this month<\/strong>, following disappointing U.S. jobs data, with some market signals indicating a 10% chance of a larger 0.5% cut.<\/li>\n<li><strong>White House Economic Adviser Kevin Hassett offered a mixed economic outlook<\/strong>, stating that U.S. investments will boost income and the economy is ready for tariffs, but also acknowledging the housing sector remains unimpressive and recent jobs data was &quot;slightly disappointing.&quot;<\/li>\n<li><strong>OPEC+ is poised to accelerate oil production increases<\/strong>, with Saudi Arabia pushing for a faster pace to regain market share, leading to Brent oil prices falling to session lows.<\/li>\n<li><strong>The World Health Organization (WHO) has added popular weight-loss drugs Ozempic and Mounjaro to its Essential Medicines List<\/strong>, a move that could significantly expand global access to these high-demand treatments.<\/li>\n<li><strong>U.S. Treasury and UK Gilt yields have seen declines<\/strong>, with the US 2-year yield dropping 10 basis points to 3.48% and UK 30-year gilt yields falling to 5.528%, the lowest since August 18.<\/li>\n<\/ul>\n<h2>Federal Reserve and U.S. Economic Outlook<\/h2>\n<p>Expectations for a Federal Reserve interest rate cut in September have surged, with <em>traders now assigning a near 100% probability to a 25-basis-point reduction<\/em> at the upcoming Federal Open Market Committee (FOMC) meeting. This comes after recent U.S. labor market reports, including the ADP private payrolls report, showed weaker-than-expected job growth, with only <strong>54,000 jobs added in August<\/strong>, well below the anticipated 75,000. Weekly jobless claims also rose, further supporting the case for monetary easing. Interest-rate futures indicate about a <strong>10% chance of a more aggressive 0.5% Federal rate cut<\/strong> this month, a significant increase from zero before the jobs data. The U.S. effective federal funds rate remained steady at <strong>4.33% on September 4<\/strong>, with <strong>$118 billion in trades<\/strong>.<\/p>\n<p>White House Economic Adviser Kevin Hassett provided a multifaceted view of the U.S. economy. While acknowledging that recent jobs data was &quot;slightly disappointing&quot; and the housing sector remains &quot;unimpressive,&quot; Hassett predicted that <em>official job figures would be updated upward by nearly 70,000 jobs<\/em>. He also asserted that U.S. investments would boost income and that the economy is &quot;ready for tariffs,&quot; with the administration having finalized trade deals covering approximately <strong>55 percent of global GDP<\/strong>. Hassett emphasized the need to &quot;look at the whole portfolio of numbers&quot; when assessing the U.S. economy.<\/p>\n<h2>Global Oil Markets and OPEC+ Strategy<\/h2>\n<p>Brent oil prices fell to session lows as Saudi Arabia signaled its intent to <em>accelerate oil production increases<\/em> within the OPEC+ alliance. Saudi Arabia is reportedly pushing OPEC+ to speed up the next oil production boost, with a potential increase in supply following a Sunday meeting. This move suggests a <em>shift in strategy towards regaining market share rather than solely supporting prices<\/em>. Eight OPEC+ countries had already agreed to increase collective crude production by <strong>547,000 barrels per day (bpd) for September 2025<\/strong>, part of a plan to reverse <strong>2.2 million bpd in voluntary adjustments<\/strong>.<\/p>\n<h2>Healthcare and Regulatory Developments<\/h2>\n<p>The World Health Organization (WHO) has made a significant move by adding <strong>Novo Nordisk&#39;s<\/strong> Ozempic (<a href=\"\/stock\/NVO\">NVO<\/a>) and <strong>Eli Lilly&#39;s<\/strong> Mounjaro (<a href=\"\/stock\/LLY\">LLY<\/a>) to its <em>Essential Medicines List<\/em>. This decision aims to expand global access to these popular GLP-1 receptor agonists, which have seen a surge in popularity for treating type 2 diabetes and obesity. The WHO is also advocating for <em>generic competition to drive down the high prices<\/em> of these drugs, which can cost over <strong>$1,000 a month in the United States<\/strong>.<\/p>\n<p>In regulatory news, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are exploring regulatory harmonization <em>beyond cryptocurrency<\/em>. They plan to host a roundtable on <strong>September 29<\/strong> to discuss coordinating rules.<\/p>\n<h2>Bond Market Movements<\/h2>\n<p>Bond markets reacted to the economic data, with the <strong>US Treasury 2-Year Yield dropping 10 basis points to 3.48%<\/strong>. In the UK, <strong>30-Year Gilt Yields fell to 5.528%<\/strong>, marking the lowest level since August 18 and decreasing by <strong>5 basis points today<\/strong>. UK 10-Year Government Bond Yields also dropped by <strong>5 basis points to 4.67%<\/strong> following the U.S. jobs data. These movements reflect investor responses to the prospects of a cooling U.S. labor market and potential Fed rate cuts.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Traders are now pricing in a near 100% chance of a 25-basis-point Federal Reserve rate cut this month, 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