The S&P 500 is hovering just below record territory, driven by a revived rally as bets have grown that the Federal Reserve will cut interest rates by half a percentage point.

For corporate America, this week’s expected interest rate cut carries risks along with rewards.

© Haiyun Jiang/The New York Times

The central bank lowered a key rate in its latest effort to steady China’s economy, as Asian stock markets followed Wall Street down.

The S&P 500 had its worst day since April. The Nasdaq composite saw its biggest single-day decline since late 2022.

Chinese companies’ stock market listings once flooded Wall Street. These days, China’s initial public offerings are in a drought.