Wall Street's Surge: Federal Reserve's Potential Moves and Market Reactions

Wall Street's main indices saw a rise on Monday as investors speculated that the Federal Reserve might soon lower borrowing costs. This optimism, fueled by chip major Broadcom's gains, pushed the Nasdaq to an intraday high.

Following a concerning nonfarm payrolls report that indicated a struggling U.S. job market, investors anticipate multiple rate cuts this year. Although a 25-basis point cut is priced in for September, there's growing speculation about a 50-basis-point cut.

Meanwhile, Broadcom contributed to a 4% rise, uplifting the tech sector. The Dow, S&P 500, and Nasdaq showed positive movements, as investors await more clues on U.S. economic health through inflation data and payroll revisions. Jeff Schulze from Clearbridge Investments noted the Fed's focus in the blackout period before its September meeting.