All three major U.S. equity benchmarks – S&P 500, Nasdaq 100, and Dow Jones – hit record highs as investors anticipate falling interest rates. Despite economic concerns like 2.9% inflation and high jobless claims, investors focused on a weakening labor market. The S&P 500, Nasdaq 100, and Dow Jones all saw gains by midday.

Speculators predict a 25-basis-point rate cut next week and a 90% chance of another in October. CFTC-regulated platform Kalshi predicts a 63% chance of a cut in December 2025. All 11 S&P sectors rose, with cyclicals leading the charge.

The shift towards lower rates also affected bonds, with Treasury yields hitting five-month lows. Gold dipped to $3,630, silver rose to $41.70, and crude oil fell 2%. Bitcoin increased to $114,000. Major indices like Russell 2000, Dow Jones, S&P 500, and Nasdaq 100 all saw positive gains.

Exchange-traded funds like Vanguard S&P 500 ETF, SPDR Dow Jones Industrial Average, Invesco QQQ Trust Series, and iShares Russell 2000 ETF all rose. Consumer Discretionary Select Sector SPDR Fund outperformed while Energy Select Sector SPDR Fund lagged. Top gainers include Synopsys, Inc. (+11.11%) and Centene Corporation (+10.66%).

Top losers include Delta Air Lines, Inc. (-4.30%) and Oracle Corporation (-3.38%). Netflix, Inc. (-2.83%) and Advanced Micro Devices, Inc. (-2.21%) also saw losses. The market remains volatile with shifting investor sentiment towards lower interest rates.

Read more at Yahoo Finance: Wall Street Soars To Records On Fed Rate Bets: What’s Moving Markets Thursday?