According to Mars Finance, on August 13, Wall Street remained calm, and the anticipated inflation data intensified market speculation about a Federal Reserve rate cut in September, driving stock prices up and short-term bond yields down.
All major sectors of the S&P 500 index rose, with the index gaining 1.1% to reach a record high. The Nasdaq 100 index also hit an all-time high. The Russell 2000 small-cap index rose 3%. Although the initial momentum of government bonds weakened, the money market expects about a 90% chance of a Federal Reserve rate cut next month. The yield on the two-year Treasury, which is more sensitive to upcoming policy changes, fell 4 basis points to 3.73%.
The dollar has fallen. The core inflation rate in the U.S. has risen to its highest level since the beginning of the year, but the slow increase in commodity prices has eased concerns about tariff-driven pressures. In the stock market, renewed bets on low interest rates have propelled an upward trend supported by ongoing enthusiasm for artificial intelligence and strong corporate earnings.