Traders on Wednesday upped their bets on another rate cut by the Federal Reserve this month, with odds of an October rate cut rising to 75% from 62% a day earlier, according to 's Fed Rate Monitor Tool.
- The jump in investor expectations for a Fed rate cut came after soft economic data raised fears that a recession may be on the horizon. Recent data showed the U.S. economy created fewer-than-expected private jobs last month, while a key gauge of U.S. manufacturing showed the worst reading since 2009.
- Underscoring the fear of a recession, markets slumped Wednesday, with the S&P 500, Dow and Nasdaq Composite down nearly 2%.
