Just about 100% of traders are betting that the Federal Reserve will cut interest rates today. What if…

📈 Markets Keep Climbing

• The S&P 500 rose 0.2% Tuesday, topping 6,900 for the first time intraday and closing at another record high — its second consecutive day of record-setting.
• The Dow Jones Industrial Average gained 162 points, or 0.3%, while the Nasdaq Composite led with a 0.8% jump, lifted by tech optimism ahead of Big Tech earnings.
• Wall Street’s mood remains upbeat, fueled by cooling inflation, easing trade tensions, and widespread belief that the Federal Reserve will deliver a rate cut today.

🏦 All Eyes on the Fed

• The Fed wraps up its two-day meeting Wednesday, with markets pricing in a 100% chance of a 25-basis-point rate cut, according to CME’s FedWatch tool.
• What traders really want to know is how dovish Jerome Powell sounds in the press conference.
• The expectation: Powell confirms another cut is coming in December, acknowledging softening labor data while maintaining confidence in the broader economy.
• The wildcard: if Powell strikes a more cautious tone or hints at a “wait and see” approach, risk assets could wobble after this euphoric run.

💻 Then All Eyes on Big Tech

• The Magnificent Seven earnings parade continues, with Alphabet, Meta Platforms, and Microsoft reporting after the bell Wednesday.
• Analysts expect all three to post big spending on AI infrastructure and data centers, themes that have powered markets all year.
• But with expectations sky-high, even a minor revenue miss or soft guidance could trigger a sharp reaction.
• Apple and Amazon will close out the earnings week Thursday — and together, these five giants make up nearly one-third of the S&P 500’s total market value.