#federal-reserve-rate-cuts

#federal-reserve-rate-cuts

Opendoor Technologies ( NASDAQ:OPEN ) stock rose more than 13% on Friday, closing at $7.97 per share. The gain came ahead of expected interest rate cuts this week and marked the company's first meaningful increase in a month. It ended a decline that began after shares reached $10.87 per share in mid-September. That earlier peak resulted from meme stock activity, with retail traders pushing the price higher on momentum rather than company results.

Fortune's Shawn Tully points out that the S&P 500's price-to-earnings ratio just hit 30, which often signals impending doom. "A PE of 30 means big cap stocks are really, really expensive by historical standards. It also signals that from these heights, the chance for big returns going forward over any extended period are low, and the risks of a sharp 'reversion to the mean' downdraft is far more likely," he wrote on Tuesday.

The US dollar traded within a narrow range on Monday, hovering near multi-month lows, and stabilizing after a decline as last week's weak payrolls data intensified expectations of policy easing. The greenback posted losses on Friday when nonfarm payrolls showed that only 22,000 jobs were created in August, and the unemployment rate climbed to 4.3%. The figures cemented the view that the labour market is losing steam, leaving the dollar vulnerable ahead of this week's upcoming data.

Bond yields tumbled as the weaker-than-expected jobs report raised expectations for rate cuts from the Federal Reserve. That sent the average rate on the 30-year fixed mortgage to the lowest level since October 2024. The steep drop could help shake up the housing market, which has seen a dearth of activity amid high home prices and borrowing costs. After a disappointing spring and summer, the housing market could start to heat up as fall approaches with the latest plunge in mortgage rates.