Market Surges Amid Fed Rate Cut Speculations and Robust Tech Earnings
The S&P 500 and Nasdaq hit record highs as July inflation aligned with predictions, boosting hopes for a Federal Reserve rate cut. Technology sector gains and easing trade tensions with China supported the rally. The CPI's modest rise fueled expectations for a 25-basis-point cut in September.
Wall Street witnessed a strong rally on Tuesday, with the S&P 500 and Nasdaq achieving record highs. The rise followed July's inflation data, which increased in line with expectations, leading to hopes of a Federal Reserve interest rate cut next month.
President Donald Trump urged a rate reduction after the Consumer Price Index rose by 0.2% in July. The Fed is predicted to lower rates by 25 basis points in September as the yield on shorter-term Treasury bonds fell, reflecting interest rate forecasts.
Technology stocks were among the biggest gainers, driven by positive sentiment around potential rate cuts and eased trade tensions between the U.S. and China. Alphabet's shares climbed following a significant cash offer for its Chrome browser, further fueling market optimism.
(With inputs from agencies.)
ALSO READ
Global Markets Stumble Amid Rising Tariffs and Inflation Fears
Fed Stands Firm Amidst Presidential Pressure for Rate Cuts
Investors Brace for Economic Data and Fed Decision Amid Tech Earnings
Shift in Chinese Trade Could Impact Euro Zone Inflation
Wall Street Steady Amid Strong GDP and Tech Earnings Anticipation
Google News