$5 Trillion Triple-Witching Fizzles as Fed Preps Rate Cut

- Weak labor data prompts the Federal Reserve to prepare a 25-basis-point rate cut. - A historic $5 trillion triple-witching options expiry shows diminished volatility. Financial markets are gearing up for a pivotal week as two major events take center stage: the Federal Reserve's anticipated interest rate decision and the triple-witching options expiry. Despite their potential impact, data indicates subdued volatility across key trading sectors. On September 14, 2025, Cryptopolitan reported that the Federal Reserve will likely announce a 25-basis-point rate cut during its Wednesday meeting due to weak labor market data. Traders are shifting their focus to Fed Chair Jerome Powell’s post-decision press conference, where they will be searching for signals about the trajectory of rate cuts later in the year. Labor market conditions underpin this shifting monetary policy outlook. Initial jobless claims have reached their highest levels in nearly four years. Additionally, a revised employment report revealed that employers created 911,000 fewer jobs between April 2024 and March 2025 than previously recorded. As a result, expectations for additional rate cuts have strengthened. The CME FedWatch tool now assigns a 76% probability of three cuts before the year's end. On Friday, the market will face the $5 trillion triple-witching options expiry. This historically volatile event sees the simultaneous expiration of stock options, index futures, and ETF contracts. However, Cryptopolitan notes that its market-moving impact has waned in recent years, especially under stable trading conditions. Despite economic headwinds, equity markets continue to perform robustly. The Nasdaq Composite recently secured another record high, closing above 22,000 for the fifth consecutive session. The S&P 500 surpassed 4,600, while the Dow Jones Industrial Average reached an all-time high of 46,000. The technology sector remains the driving force behind these market gains. UBS projects the S&P 500 could hit 6,600 by year-end and 6,800 by mid-2026.