Yahoo Finance
Stocks are eyeing a bid for fresh record highs after Jerome Powell made it crystal clear the Fed is ready to pivot to lowering rates in September.
US Stocks: Dow Hits Record, S&P Dips on Earnings Jitters
On Monday, the Dow Jones Industrial Average (DJI) surged to a record high, extending last week's rally fueled by the Federal Reserve's promise of imminent rate cuts. The Dow jumped over 200 points, or 0.5%, to a new peak. However, the S&P 500 (GSPC) slipped slightly, while the tech-heavy Nasdaq Composite (IXIC) dipped 0.1%.
After Federal Reserve Chair Jerome Powell emphasized the Fed's readiness to lower rates in September, stocks gained momentum and approached record highs. The S&P 500 is now less than 1% below its July all-time high. Markets anticipate rate cuts totaling 1% by year-end.
However, with only three Fed meetings remaining in 2023 and the August jobs report pending, investors question the timing and likelihood of a 0.5% cut.
Attention now turns to Nvidia's (NVDA) earnings report on Wednesday, a crucial event that could shape market sentiment. A disappointing report could dampen the AI-related stock gains that have supported recent rallies.
Furthermore, the PCE index, a key inflation gauge closely watched by the Fed, will be released on Friday, influencing rate path calculations. Additionally, second-quarter GDP data will be disclosed on Thursday.
Meanwhile, oil prices climbed nearly 3% due to production disruptions in Libya and rising tensions in the Middle East, following strikes by both Israel and Hezbollah. Global benchmark Brent crude futures topped $81 per barrel, while US benchmark WTI crude futures traded at $76.90.
On Monday, the Dow Jones Industrial Average (DJI) surged to a record high, extending last week's rally fueled by the Federal Reserve's promise of imminent rate cuts. The Dow jumped over 200 points, or 0.5%, to a new peak. However, the S&P 500 (GSPC) slipped slightly, while the tech-heavy Nasdaq Composite (IXIC) dipped 0.1%.
After Federal Reserve Chair Jerome Powell emphasized the Fed's readiness to lower rates in September, stocks gained momentum and approached record highs. The S&P 500 is now less than 1% below its July all-time high. Markets anticipate rate cuts totaling 1% by year-end.
However, with only three Fed meetings remaining in 2023 and the August jobs report pending, investors question the timing and likelihood of a 0.5% cut.
Attention now turns to Nvidia's (NVDA) earnings report on Wednesday, a crucial event that could shape market sentiment. A disappointing report could dampen the AI-related stock gains that have supported recent rallies.
Furthermore, the PCE index, a key inflation gauge closely watched by the Fed, will be released on Friday, influencing rate path calculations. Additionally, second-quarter GDP data will be disclosed on Thursday.
Meanwhile, oil prices climbed nearly 3% due to production disruptions in Libya and rising tensions in the Middle East, following strikes by both Israel and Hezbollah. Global benchmark Brent crude futures topped $81 per barrel, while US benchmark WTI crude futures traded at $76.90.