Fed rate hold bets rise to nearly 70%, lifting stocks

Expectations that the Federal Reserve will leave interest rates unchanged next month have strengthened, helping support stocks. Pricing in Fed Funds futures now implies a nearly 70% probability of no rate change, up from 56% a week earlier, after this week’s consumer and producer price data shifted market bets, according to the CME FedWatch tool. Futures pointed to a mixed open, however, and oil moved higher overnight following reports of another tanker attack in the Strait of Hormuz, a key global shipping chokepoint.

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