Financial Markets Decline as Traders Anticipate Fed Rate Cuts

Financial markets are experiencing a downturn, contributing to expectations for Federal Reserve support.

Bitcoin traded down 8% at $75,800.
S&P 500 futures fell roughly 5% on Monday, with overall losses nearing 15%.
Traders anticipate Fed intervention similar to past financial crises.
CME FedWatch Tool indicates potential for five rate cuts in 2025.
61% probability of a 25 basis point cut at the May 7 meeting, lowering rates to 4.25–4.50%.
Market predicts year-end fed funds rate as low as 3.00–3.25%.
10-year Treasury yield decreased to 3.923%, aiding U.S. debt refinancing.
Shift from longer-dated bonds to short-term Treasury bills has increased refinancing needs.