2 months ago
19
The S&P 500 and Nasdaq both ended at all-time highs following remarks from Federal Reserve Chair Jerome Powell. He indicated that the central bank would consider cutting rates before inflation hit the 2 per cent target. The S&P 500 climbed 1 per cent to 5,633.91, marking its sixth consecutive record close, while the Nasdaq Composite Index jumped 1.2 per cent, achieving its seventh straight record read more
 "Interest rate cut expectation spurs Wall Street higher, new records for Nasdaq, S&P 500")
In the US, the Nasdaq clocked a record high for the seventh day in a row, while the S&_ 500 did so for the sixth consecutive time on July 10. Image courtesy: AI-generated
Wall Street stocks surged Wednesday (July 10), with key indices reaching fresh records as expectations for upcoming interest rate cuts gained momentum.
The S&P 500 and Nasdaq both ended at all-time highs following remarks from Federal Reserve Chair Jerome Powell. He indicated that the central bank would consider cutting rates before inflation hit the 2 per cent target.
The Dow Jones Industrial Average rose 1.1 per cent to 38,921.37. The S&P 500 climbed 1 per cent to 5,633.91, marking its sixth consecutive record close, while the Nasdaq Composite Index jumped 1.2 per cent, achieving its seventh straight record.
Expectation of a rate cut
Much of Wall Street anticipates that the Fed will begin lowering its main interest rate by September. Powell noted, “You don’t want to wait until inflation gets all the way down to 2 per cent, because inflation has a certain momentum. If you waited that long, you’ve probably waited too long.”
He added that more robust economic data would boost confidence and pave the way for a rate cut.
Market movers
Advanced Micro Devices stock saw a 3.9 per cent gain after announcing its acquisition of Silo AI, Europe’s largest private artificial intelligence lab, for approximately $665 million.
Taiwan Semiconductor’s (TSMC) US-listed shares rose by 3.5 per cent following a report that its revenue grew nearly 33 per cent in June compared to the previous year.
Honeywell International shares advanced 1.9 per cent after disclosing its purchase of Air Products’ liquefied natural gas process technology and equipment business for $1.8 billion. Air Products stocks edged up 0.4 per cent.
Microsoft stock price advanced 1.5 per cent as the tech giant informed regulators it would not take a non-voting position on the board of OpenAI, amidst scrutiny of its influence over the ChatGPT maker.
Bond market dynamics
The yield on the 10-year Treasury fell to 4.28 per cent from 4.3 per cent late Tuesday (July 9), down from 4.70 per cent in April. This move since spring is significant for the bond market and provides support for stock prices.
The two-year Treasury yield, which is more sensitive to expectations of Fed action, remained steady at 4.62 per cent, unchanged from late Tuesday.
With inputs from agencies
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
English (US) ·