S&P 500 Hits New High Amid Rate Cut Expectations

The S&P 500 achieved a record high close on Tuesday, fueled by UnitedHealth's rally and a downward revision in payrolls that bolstered expectations of an imminent Federal Reserve interest rate cut aimed at supporting economic growth.

The revised U.S. job data indicated the economy may have created 911,000 fewer jobs than previously estimated in the year leading up to March, suggesting that job growth was stalling prior to the introduction of global tariffs by President Trump.

Despite weak nonfarm payrolls for July and August, financial markets have largely priced in a 25 basis point rate cut, with futures signaling a slight 10% probability of a more substantial 50 basis point cut, according to CME's FedWatch tool.

(With inputs from agencies.)