Stocks rise on dovish rate bets; bond rally pauses: Markets wrap

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Spot gold rose 0.2% to $2 331.46 an ounce.

Stocks advanced on speculation that a cooling economy will give the Federal Reserve room to lower rates this year. Treasuries halted a rally that had sparked the biggest two-day slide in yields this year.

“We are starting to see labor market slackness, which gives the Fed more flexibility,” Justin Onuekwusi, chief investment officer at St James’s Place Management, said in an interview. “Given we have seen weakaness in labor market data this past week, all eyes will be on this number,” he said of the payrolls data.

Expectations for the Fed’s first full 25 basis-point rate cut are now tilting toward November, a month ahead of earlier expectations, after the Fed’s preferred inflation gauge held steady and measures of manufacturing and spending came in softer than expected.

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