RATE CUTS NEXT MONTH?
Wall Street experienced a significant surge today.
The S&P 500 index saw all major sectors increase, climbing 1.1% to reach a record high. The Nasdaq 100 index also hit an all-time peak, while the Russell 2000 small-cap index rose by 3%.
The Street became "optimistic" as inflation data aligned with expectations, intensifying speculation about a potential Federal Reserve rate cut in September.
This anticipation led to a rise in stock markets and a decline in short-term bond yields.
Although the initial surge in Treasury bonds lost momentum, money markets estimate a 90% probability of a Federal Reserve rate cut next month.
The yield on two-year Treasury notes, which are more sensitive to upcoming policy changes, fell by 4 basis points to 3.73%.