Wall Street Soars Amid Payroll Revisions and Fed Rate Cut Hopes

Wall Street's major indexes closed at record highs on Tuesday, driven by optimism for potential interest rate cuts by the Federal Reserve to stimulate economic growth. The S&P 500, Nasdaq, and Dow Jones Industrial Average continued their upward trend, fueled by enthusiasm surrounding artificial intelligence and expectations of reduced borrowing costs.

Revised government data revealed the U.S. economy created 911,000 fewer jobs in the last year than previously thought, suggesting pre-existing weaknesses before the imposition of tariffs. Investors speculate that the Federal Reserve will likely cut rates by 25 basis points, with a slim chance of a 50-point reduction next week.

UnitedHealth shares rose following optimistic projections for Medicare plan enrollments, while JPMorgan Chase saw a boost on news of rising investment banking revenue. Analysts are keenly observing upcoming producer inflation and consumer prices data to determine the influence of trade policies and the likelihood of further rate cuts.

(With inputs from agencies.)