Stocks Near Record as Fed-Cut Trade in Full Swing: Markets Wrap

Wall Street traders betting the Federal Reserve will cut rates drove stocks close to all-time highs amid hopes that policy easing at a time when the economy is bending, but not breaking will power Corporate America.

Following a slide in the aftermath of weak jobs figures, the S&P 500 bounced back. While upcoming data is projected to show that progress on reducing inflation has stalled, traders braced for almost three Fed cuts this year starting in September. Treasuries kept rising, with the two-year yield remaining at the lowest level since 2022. The dollar retreated.

Stocks bounce on Fed Bets.

Source: Bloomberg

“After last week’s ...