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U.S. stocks jumped Monday as traders priced in the Fed’s improving outlook for a rate cut.
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Major indexes rose, with the S&P 500 hitting a record high.
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Investors predict two rate cuts in 2024, according to the CME FedWatch tool.
U.S. stocks climbed on Wednesday, with the S&P 500 and Nasdaq Composite closing at new records as traders expressed optimism about rate cuts and cheered Nvidia’s rally to claim the title of second most valuable company in the world. world.
Expectations for rate cuts have been bolstered by a slowing labor market, giving the Federal Reserve room to ease monetary policy. According to ADP data, the private sector added 152,000 jobs over the past month, fewer than the 175,000 jobs economists expected.
“Investors are viewing slow economic data as a Goldilocks, with growing hope of a Fed rate cut,” Mark Hackett, head of investment research at Nationwide, said in a statement Wednesday. “The slow and steady advance of the stock markets continues to confound the bears.”
Nvidia rose sharply on Thursday, leading the tech sector’s rally. The chipmaker ended the day at a record high, with shares up 5% to close at $1,224.40.
The latest rise in the company’s shares allowed it to overtake Apple as the second most valuable company in the world.. It is now behind Microsoft in terms of market capitalization.
The next data point investors will focus on comes Friday, when the Bureau of Labor Statistics releases the May nonfarm payrolls report. Economists expect 1,750,000 jobs to be created in May, roughly in line with April’s figure.
Here is where the American indices were at the 4:00 p.m. close on Wednesday:
Here’s what else is happening today:
In commodities, bonds and cryptocurrencies:
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West Texas Intermediate Crude oil jumped 1.3% to $74.20 a barrel. Brent crudethe international benchmark, rose 1.3% to $78.53 per barrel.
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Gold rose 1.17% to $2,355.29 an ounce.
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The 10-year Treasury yield fell five basis points to 4.283%.
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Bitcoin rose slightly by 0.63% to $71,074.
Read the original article on Business Insider
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