"Today's the day - the day the Federal Reserve (probably) will cut interest rates for the first time this year. Federal Open Market Committee members have been discussing whether to cut target interest rates since yesterday, and at 2 p.m. today are expected to render their verdict, cutting rates by 0.5% (maybe), 0.25% (probably), or 0% (potentially - in which case, a lot of investor tears will be shed)."
"One factor boosting confidence that a rate cut of some size is coming is the nation's housing market. CNBC just reported that (annualized) applications for new building permits dropped 3.7% in August, putting us on course for only 1.31 million new houses to be built this year. Actual housing starts look similar, trending towards 1.307 million for the year - and that number is down 8.5% from July."
"Earnings "season" is basically over at this point, but the occasional earnings report still pops up from time to time. Cereal giant and S&P 500 component company General Mills ( NYSE: GIS) beat earnings by a nickel in its fiscal Q1 2026 report this morning, earning $0.86 for the quarter. Revenue was right on target at $4.5 billion, and management reaffirmed its guidance for flat sales this year, somewhere between down 1% and up 1%."
The Federal Open Market Committee is expected to decide on a target interest rate cut at 2 p.m., with options of 0.5%, 0.25%, or 0%. Most investors anticipate a 0.25% cut, leaving the Vanguard S&P 500 ETF (VOO) trading essentially flat. The housing market shows weakening momentum: annualized new building permit applications fell 3.7% in August, projecting about 1.31 million new homes for the year, while housing starts trend toward 1.307 million, down 8.5% from July. General Mills beat fiscal Q1 2026 EPS by $0.05 with $0.86, reported $4.5 billion revenue, reaffirmed flat sales guidance, warned adjusted earnings could decline 10–15%, and its stock fell 3% premarket.
Read at 24/7 Wall St.
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