Stock prices rise, bond yields drop on weak economic data raising expectations for Fed rate cut

From Yahoo Finance: 2024-07-03 16:32:20

Wall Street traders raised stock prices and lowered bond yields amid weaker economic reports, indicating a possible Federal Reserve rate cut. The S&P 500 hit an all-time high, fueled by bets on lower rates benefiting Corporate America. Economic slowdown signs influenced the Fed minutes. The focus remains on the job report and political developments.

Tesla Inc. led mega-cap gains as the S&P 500 reached its 33rd record in 2024. Despite Treasury 10-year yields dropping, the dollar slipped. Market sentiment remains positive amidst macroeconomic clouds. Investors anticipate a Fed rate cut in September as swap traders project two cuts for 2024. Jobs report expectations show a gain of 190,000.

Federal Reserve Chair Jerome Powell highlighted the delicate balance between taming inflation and supporting the labor market. Investors eye the unemployment rate assumptions and are focused on wage growth. Economic data suggest inflation is waning, but the Fed needs more evidence before lowering rates. The clock is ticking for the US economy.

Corporate highlights include Novo Nordisk’s potential risk with diabetes drugs, Nvidia CEO’s massive stock sell-off, and Jeff Bezos planning to unload Amazon shares. Lyft raises e-bike rental fares in NYC, while Ford faces lower F-Series pickup truck sales. Southwest Airlines adopts a shareholder rights plan, and LL Flooring Holdings Inc. considers Chapter 11 bankruptcy.

Key events this week include the UK general election, US Independence Day holiday, Eurozone retail sales, and the US jobs report. Market movements show stocks rising, the dollar weakening, cryptocurrencies falling, and commodities fluctuating. The story was produced with Bloomberg Automation and assistance from John Viljoen, Sujata Rao, and Winnie Hsu.



Read more at Yahoo Finance: Stocks Hit Fresh Highs as Weak Data Sink US Yields: Markets Wrap