Market Optimism Soars as Fed's Potential Rate Cut Looms
Futures tied to the S&P 500 and Nasdaq hit record highs as confidence grows in the Federal Reserve potentially easing monetary policy next month. Despite a surge in core inflation, investors anticipate a dovish Fed move due to job market weaknesses. Banking stocks and tech corporations face varying impacts.
As Wall Street remains optimistic, futures tracking the S&P 500 and Nasdaq indexes pushed to record heights, with hopes pinned on potential monetary policy easing by the Federal Reserve next month.
Amidst a notable rise in core inflation, recent data showing weakness in the job market has bolstered investors' forecasts for a dovish move by the central bank in September. Current interest rate futures indicate a 98% chance of a 25 basis point rate cut, up from 88.8% earlier in the week.
In the premarket session, rate-sensitive banking stocks such as Bank of America and Citigroup showed marginal increases, while other sectors faced distinct challenges. Investors remain attentive to policy developments, especially with Chicago Fed President Austan Goolsbee's forthcoming remarks.
(With inputs from agencies.)
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