S&P 500 nears all-time high; investors eyeing Fed rate cuts and optimistic about economy

From Yahoo Finance: 2024-07-02 15:07:48

Stocks rose as bond yields fell, with traders eyeing Federal Reserve rate cuts after Jerome Powell signaled a disinflationary path. S&P 500 nears 5,500, Tesla Inc. boosts megacap gains, while Nvidia Corp. dips. Treasury 10-year yields retreat from 4.5% mark. Swap market prices in almost two rate cuts for 2024.
Economist Lori Calvasina predicts S&P 500 will hit new highs by year-end at 5,700. She remains bullish despite market risks, anticipating a strong 2024 economy. Powell notes a job openings rise, signaling a more balanced labor market. Krishna Guha views Powell’s comments as supportive for a potential rate cut in September.
S&P 500 sets 31 all-time closing highs in 2024, compares to past boom-bust cycles with a tech-driven rally. Deutsche Bank projects a 13% rise in US earnings for second quarter, sixth of above-average beats. Wall Street prepares for key economic data Wednesday, ahead of July fourth US payrolls reading.
Investors await three months of inflation data for Fed’s dovish turn. Corporate highlights include price cut demands on weight loss and diabetes drugs, housing market concerns, and exclusive talks on BET network sale. Power cuts in Northern California raise wildfire risk, Robinhood eyes cryptocurrency futures offerings.
Key events include Eurozone and US economic data releases, UK general election, and US Independence Day holiday. Market movements show a rise in S&P 500, Nasdaq 100, Dow Jones, MSCI World Index. Currencies show fluctuations with a fall in the Dollar Spot Index. Cryptocurrencies and bond yields also experience variations.



Read more at Yahoo Finance: S&P 500 Rises Toward All-Time High as Tesla Up 9%: Markets Wrap