Traders see 71% chance of July rate hike to a 5.25%-5.5% range after Fed skips June rate increase

After skipping a June rate hike on Wednesday, traders in Fed-fund futures traders now see a 71.1% chance of the Federal Reserve hiking rates in July, which would bring the central bank’s benchmark rate to a range of 5.25% to 5.50%, according to the CME FedWatch Tool. Stocks fell on Wednesday after the Fed left rates unchanged, as expected, but members of the rate-setting committee also signaled up to two more rate hikes of 25 basis points. The Dow Jones Industrial Average DJIA dropped about 408 points, or 1.2%, while the S&P 500 index SPX and Nasdaq Composite COMP both turned negative after the rate decision. Focus has…