The S&P 500 trimmed steep early losses on 2 Sept after fears of a UK gilt-driven liquidity squeeze, closing –0.7%. A dovish Fed pivot is increasingly priced in, with Fed Funds futures assigning a 91% chance of a September rate cut. US Treasury yield curve bull steepening signals liquidity support, while technicals show the SPX 500 holding key support at 6,370/6,350, suggesting potential for a short-term bullish reversal.
03-09-2025 09:08 GMT
by Kelvin Wong