Some forecasters expect the Fed to cut interest rates by a quarter-point Wednesday. Most, however, expect a half-point reduction. The CME FedWatch forecast tracker favored a half-point cut by a 55-45 margin at midday. (Earlier Wednesday, forecasters rated the probability of a half-point reduction even higher.)

The market continues to expect the Federal Reserve to start its rate-cutting cycle with a quarter-point reduction next week. Fed-funds futures now see a 69% chance of a 25-basis point cut at the Federal Open Market Committee's September meeting,

The Federal Reserve lowered its benchmark interest rate by a half percentage point Wednesday, an aggressive start to a policy shift aimed at bolstering the US labor market.