Morning Business Report: Fed rate cut expected, markets rally

The U.S. central bank is widely expected to reduce interest rates this week in response to a cooling labor market.

(LILAMAX)- The U.S. central bank is widely expected to reduce interest rates this week in response to a cooling labor market. A cut would lower borrowing costs for credit cards and auto loans almost immediately. The Federal Reserve begins its two-day meeting September 16, with a policy decision set for September 17.

Investors will also be watching a packed economic calendar that includes reports on retail sales, industrial production, and housing starts.

Markets surged ahead of the meeting. The Nasdaq Composite closed every day higher last week, while the S&P 500 climbed 1.6%, its best performance since early August. Traders are betting that weakening jobs data and easing inflation will push the Fed toward a rate cut.

Meanwhile, the internet is buzzing over Home Depot’s limited-edition Halloween “Homer Bucket.” The $2.98 bright orange bucket, decorated with jack-o’-lanterns, bats, ghosts, and spiderwebs, has gone viral, with shoppers flooding social media to show off their finds.

On the global stage, U.S. and Chinese officials met in Madrid on Sunday to continue trade talks. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer joined Chinese negotiators for their fourth meeting in as many months, as both sides attempt to stabilize relations strained by President Donald Trump’s tariffs.

In entertainment, actor Tim Blake Nelson says the new film Bang Bang explores the cost of partially realized dreams. The movie is now in theaters and will soon be available on streaming platforms.