Indexes Peak on Prospect of Rate Cuts - InvestingChannel

Indexes Peak on Prospect of Rate Cuts

The Dow Jones Industrial Average rose to a new record level on Monday as investors look to push equities higher now that the Federal Reserve indicated that rate cuts are forthcoming.

The 30-stock index prospered 172.9 points to begin the week at 41,347.48

The S&P 500 index slipped 7.27 points to 5,627.34.

The NASDAQ retreated 122.37 points to 17,755,42.

The market kicked off August under pressure, as concerns over a possible recession, and the unwind of a popular hedge fund trade linked to the Japanese yen, pulled stocks off their record levels. The S&P 500 lost 3% on Aug. 5 — its biggest one-day loss since 2022. The Dow also had its worst selloff in about two years that day, plunging more than 1,000 points.

Since then, though, expectations of lower Federal Reserve interest rates and improving U.S. economic data have sent stocks soaring. The S&P 500 has surged 8% since Aug. 5 and was less than 1% away from its record high set in mid-July, while the Dow has soared about 7%

The July personal consumption expenditures reading is due for release on Friday.

Prices for the 10-year Treasury stayed put, keeping yields at Friday’s 3.80%.

Oil prices picked up $2,68 at $77.81 U.S. a barrel.

Gold prices vaulted $5.80 to $2,552.10.

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