By Sam Goldfarb
Rising energy prices and firm economic data are causing investors to quickly dial back their bets on interest-rate cuts this year.
-- Interest-futures show investors now see a less than 50-50 chance of two or more cuts in 2026, according to CME data.
-- That's a sharp drop from the 79% chance indicated at the end of last week.
A jump in oil and gas prices, spurred by the U.S.-Israeli attacks on Iran, has played a major role in the changing odds. Investors wager that higher inflation will make it harder for the Federal Reserve to ease monetary policy.
A run of solid economic reports has also helped, including better-than-expected readings on U.S. manufacturing and service-sector activity. Plus, data out Thursday showed weekly jobless claims remained subdued.
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(END) Dow Jones Newswires
March 05, 2026 09:58 ET (14:58 GMT)
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