From Nasdaq: 2024-07-26 11:37:18

US stocks rebounded today with the S&P 500 up +0.87%, Dow Jones up +1.13%, and Nasdaq 100 up +0.82%. Bargain hunting post-rout and today’s PCE deflator report kept stocks higher. June PCE deflator was in line with expectations, supporting a Fed rate cut in September. Sep 10-year T-note yields down -5.1 bp.

Both headline and core PCE deflators at 3-1/4 year lows in June, pointing to dovish Fed policy. Though below target, inflation is still above Fed’s +2.0%. Reports of June personal spending and income suggest strong consumer spending amid deteriorating finances. Stock focus shifts to tech earnings next week. Market expects +9% y/y earnings growth for S&P 500 companies.

Overseas markets are mixed today. Euro Stoxx 50 is up +0.76%. China’s Shanghai up +0.14%, ending recent declines. Japan’s Nikkei down -0.53% for eight consecutive drops. Interest rates saw 10-year T-note prices rise after PCE deflator report and weak personal income data. 10-year T-note yield at 4.190%.

Bitcoin up over +3%, driving up related stocks like Marathon Digital, Riot Blockchain, and Coinbase. Chip stocks like Nvidia, ON Semiconductor, Qualcomm, etc. are up over +2%. Charter Communications soared +15% post-earnings beat, while 3M rose +13%. Baker Hughes up +2%, Bristol Myers up +7%, Biogen down -5%, and Booz Allen down -10%. Earnings reports expected from Centene Corp, Aon PLC, Charter Communications, and more.



Read more at Nasdaq: Stocks Rebound Higher as Deflator Report Supports Fed Rate-Cut Expectations