📈 Wall Street Hits New Milestones as Rate-Cut Bets Surge
The S&P 500 and Nasdaq closed at record highs, fueled by mounting expectations that the Federal Reserve will deliver a 25 bps rate cut in September. The CME FedWatch Tool now places the odds near 100%, following a string of softer economic data:
Inflation has eased toward the Fed’s 2% target.
The labor market shows signs of cooling, with job growth slowing.
Bond yields dipped, reflecting investor confidence in a dovish policy shift.
Tech giants and rate-sensitive sectors are leading the rally, as lower borrowing costs could unlock fresh corporate spending and boost valuations. Traders are now eyeing upcoming Fed minutes for confirmation of the central bank’s dovish pivot.
💡 The market’s message is clear: the countdown to September has begun.