Futures markets are also expecting a rate cut. Investors peg the chances of a quarter-point interest rate cut at nearly 96%, according to the CME FedWatch Tool, a measure of market sentiment.

A Federal Reserve interest rate cut in September, the first this year, followed perhaps by another before year-end remains the base forecast for most economists polled by Reuters amid rising concerns about the health of the world's biggest economy.

Wall Street has priced in a 94.2% probability of the Federal Reserve cutting interest rates in September. JPMorgan Asset Management's fixed income portfolio manager, Kelsey Berro, joins Yahoo Finance Senior Reporter Allie Canal on Market Domination to explain the three reasons the Fed still hasn't cut rates this year despite macro conditions being comparable to last year's.