Opinion

Investors cheer as interest rate pain finally appears to be easing

Investors now expect the Federal Reserve will cut rates in September, amid growing signs economic activity is faltering. And that’s pushing markets higher

Karen MaleyColumnist

Jun 6, 2024 – 9.48am

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Investors celebrated signs that global interest rates are finally headed lower by pushing the S&P 500 and Nasdaq to record highs, and by elevating US chipmaker Nvidia into the $US3 trillion ($4.5 trillion) club, alongside Apple and Microsoft.

There was widespread jubilation in markets after the Bank of Canada became the first Group of Seven central bank to loosen monetary policy in the current interest rate cycle. The Canadian central bank trimmed its official interest rate to 4.75 per cent from 5 per cent, its first interest rate cut in four years.

Karen Maley writes on banking and finance, specialising in financial services, private equity and investment banking. Karen is based in Sydney.