Market Watch: Dow's Surge Amid Fed Speculations
The Dow hit a record high thanks to Home Depot's gains, despite wider economic caution before a Federal Reserve conference. The Nasdaq fell as Nvidia and Microsoft dipped. Interest rate cuts and consumer spending trends were highlighted, with the Fed's Jackson Hole symposium in focus for economic insights.
On Tuesday, the Dow Jones Industrial Average reached a record high, bolstered by Home Depot shares rising after the retailer maintained its annual forecast. However, the market overall showed caution ahead of a Federal Reserve conference later in the week, which is expected to provide insights into economic policy.
The Nasdaq saw a decline, dropping more than 1% as major tech companies like Nvidia and Microsoft experienced losses of 2.1% and 1.4%, respectively. These megacaps had previously enjoyed a rally throughout the year. Investor attention also turned to earnings reports from Lowe's, Walmart, and Target, seeking further clues on the strength of consumer spending in the U.S.
Fed Vice Chair for Supervision Michelle Bowman's upcoming remarks are anticipated, especially as her name is considered for the Fed's top position when Chair Jerome Powell's term concludes next year. Meanwhile, interest rate futures indicate two rate cuts this year, each 25 basis points, with the first in September, aligning with sentiment for reduced borrowing costs.
(With inputs from agencies.)
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