Mideast markets rebound as Fed calms investor nerves

DUBAI: Most stock markets in the Middle East rebounded on Tuesday, clawing back some of their losses from the previous session when fears of a possible US recession spooked investors, as comments from the Federal Reserve officials soothed their nerves.

San Francisco Federal Reserve Bank President Mary Daly on Monday said it is too soon to know if the July jobs report signals a slowdown or real weakness, but it is “extremely important” for the central bank to prevent the labour market from tipping into a downturn. Market expectations that the Fed would cut interest rates by 50 basis points at its September meeting remained intact, with futures implying a 71% chance of such an outsized move.

The market has around 100 basis points of easing priced in for this year, and a similar amount for 2025.