Stocks hit record highs as market anticipates Federal Reserve rate cuts, leading to positive market outlook.

From Yahoo Finance: 2024-07-05 16:16:14

Stocks hit all-time highs as traders focus on potential Federal Reserve rate cuts despite signs of economic slowdown. S&P 500 reached its 34th record this year. Nonfarm payrolls increased by 206,000 in June with an unemployment rate of 4.1%. Wall Street bets on Fed cuts in 2024 starting in November. Treasury yields fell, dollar dropped, pound climbed.

Investors locked in peak yields as bond funds recorded $19 billion in inflows, while global equity funds saw $10.9 billion inflows. Fed likely to lower rates in second half as labor market cools. Apollo Global Management predicts no Fed cuts in 2024 due to gradual economic cooling and inflation concerns.

Key market-moving events include Jerome Powell’s testimony and CPI report next week. Strong seasonality historically boosts S&P 500 in first 10 days of July. Corporate highlights include ConocoPhillips lawsuit, SunPower turmoil, Glencore’s acquisition, Samsung’s profit growth, BBVA approval for Banco Sabadell bid, Shell impairments.

Market highlights: S&P 500 up 0.5%, Nasdaq 100 up 1%, Dow Jones up 0.2%. Dollar index fell 0.2%, euro rose 0.3%, pound rose 0.4%. Bitcoin fell 3.2%, Ether fell 5%. 10-year Treasury yield declined to 4.28%. WTI crude fell to $83.10, gold rose to $2,388.72. Market outlook remains positive with Fed rate cut expectations and strong seasonality.



Read more at Yahoo Finance: Stocks Up as Path to September Fed Cut Gets Wider: Markets Wrap