Stock market today: Dow eyes 40,000 as faith in rate cuts lifts US futures

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Dow أخبار

Fed Rate,Federal Reserve

Signs of cooling inflation continued to spur bets for a Federal Reserve rate cut in September.

US stocks were taking a breather after a record-setting rally as signs of cooling inflation continued to spur bets for a Federal Reserve rate cut in September. S&P 500 futures were close to flat on the heels of closing above 5,300 for the first time. Contracts on the Dow Jones Industrial Average and the tech-heavy Nasdaq 100 were also little changed. Stock gains have picked up pace as belief grows that the US economy is headed for a soft landing.

Trader bets on a Fed rate cut in September rose to over 70%, per the CME FedWatch Tool, amid rising speculation about an easing as soon as July. Read more: How does the labor market affect inflation? Investors also jumped into bonds, sending the 10-year Treasury yield down near one-month lows at around 4.33%. On the corporate front, Walmart's posted quarterly profit, revenue and same-store sales beat Wall Street estimates.

 

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