From Investing.com: 2024-07-09 14:33:45

The S&P 500 closed at a record high for the fifth-straight session on Tuesday as investors maintained bets on a rate cut in September despite Federal Reserve Chair Jerome Powell’s testimony. The index rose 0.1% to 5,577.03, while the Dow fell 53 points.

Powell noted the labor market cooling and warned of the risk of keeping rates high for too long. He stated that good data in the coming months could increase the chances of an interest rate cut in September, further boosting expectations of a rate cut.

Investors are eagerly awaiting the June inflation data on Thursday for more clues on the inflation path, as the Fed continues to monitor economic indicators to build confidence in easing inflation before cutting rates. Traders are now pricing in over a 72% chance for a 25 basis point rate cut in September.

Earnings season is set to kick off this week with major banks like JPMorgan Chase, Wells Fargo, and Citigroup reporting quarterly earnings on Friday. Analysts predict a 10.1% increase in S&P 500 companies’ aggregate earnings per share in the second quarter.

NVIDIA shares rose over 2% after Keybanc raised its price target on the chipmaker, citing increasing demand for artificial intelligence. Tesla also saw a 3% increase as Morgan Stanley reaffirmed its positive rating due to the company’s strong position in the global battery electric vehicle market. However, Helen of Troy Ltd shares plummeted 27% after missing estimates.



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