By Lisa Pauline Mattackal and Ankika Biswas
(Reuters) – The Nasdaq and the struck record highs on Monday, while the Dow scaled a more than one-month high as financiers waitedfor a secret inflation report, Congressional testament from Federal Reserve Chair Jerome Powell and the start of revenues season this week.
Expectations for interest-rate cuts as early as September got a increase after Friday’s nonfarm payrolls report revealed U.S. task development slowed in June, the mostcurrent information to point to weakpoint in labor market conditions.
Investors, nevertheless, will lookfor a clearer photo of the Fed’s mostlikely financial policy trajectory for the rest of the year.
Traders now see a 74% possibility of a 25-basis-point cut in September, up from last week’s 60%, while anticipating an general decrease of about 50 bps for the year, according to CME’s FedWatch and LSEG information.
On the financial front, this week’s customer and manufacturer cost index information will be carefully seen to gauge whether rate pressures are alleviating.
“The truth of the matter is the Fed has a double required and their required is work and inflation. Inflation is going down and joblessness is going up,” stated Thomas Hayes, chairman at Great Hill Capital LLC.
“They now have cover to make a cut when they desire to and indications point towards September.”
The S&P 500 and the Nasdaq closed at all-time highs as megacap tech stocks such as Meta Platforms (NASDAQ:) and Microsoft (NASDAQ:) touched record peaks.
However, megacaps consistingof Alphabet (NASDAQ:), Amazon.com (NASDAQ:) and Meta Platforms shed inbetween 0.4% and 1.3%. Tesla (NASDAQ:) fell 2.4% af