Express
S&P 500 and NASDAQ Hit Record Highs on Expectations of Fed Rate Cut
Summary: Wall Street remained calm following news that in-line inflation data intensified speculation of a Fed rate cut in September, driving stock market gains and lowering short-term bond yields. The S&P 500 index rose 1.1%, reaching a historic high, with all major sectors up. The NASDAQ 100 index also hit a record high, while the Russell ...
Wall Street remained calm following news that in-line inflation data intensified speculation of a Fed rate cut in September, driving stock market gains and lowering short-term bond yields. The S&P 500 index rose 1.1%, reaching a historic high, with all major sectors up. The NASDAQ 100 index also hit a record high, while the Russell 2000 small-cap index rose 3%. Although the initial rise in government bonds weakened, the market predicts a 90% chance of a Fed rate cut next month. The two-year Treasury yield, more sensitive to upcoming policy changes, fell 4 basis points to 3.73%. The US dollar declined as core inflation rose to its highest level since the beginning of the year, but slow growth in commodity prices eased concerns over tariff-driven pressures. In the stock market, renewed bets on low interest rates fueled the uptrend supported by AI enthusiasm and strong corporate earnings.
