S&P 500 and Nasdaq Hit Record Highs as Powell Fuels Rate Cut Hopes


Last updated: July 10, 2024
stock_market_today__s&p_500
Courtesy of finance.yahoo.com

The S&P 500 and Nasdaq notched new record closes on Tuesday, marking their sixth consecutive day of gains, buoyed by hopes for interest rate cuts following Federal Reserve Chair Jerome Powell’s semiannual testimony to Congress.

The S&P 500 (^GSPC) edged just above the flatline, achieving its 36th record close this year. The Nasdaq Composite (^IXIC) climbed about 0.1%, adding to its record run.

In contrast, the Dow Jones Industrial Average (^DJI) oscillated throughout the session, ending down roughly 0.1%.

The rally in stocks comes amid signs of a slowing US economy, which has bolstered expectations for rate cuts.

Powell, in his address to the Senate, expressed optimism over cooling inflation but emphasized the need for more “good data” to ensure it aligns with the Fed’s 2% target.

Despite the cautious tone, traders are betting on two rate cuts this year. “We’re increasingly confident in our forecast that the Fed will cut rates in September,” noted Ryan Sweet, chief US economist at Oxford Economics.

Powell’s upcoming testimony before the House on Wednesday, followed by a key update on consumer inflation on Thursday, could further influence market sentiment, particularly if they confirm a cooling trend.

However, some caution is creeping into the market. Morgan Stanley strategist Mike Wilson is forecasting a 10% correction, suggesting that a summer pullback might be on the horizon.

You May Also Like: S&P 500 Soars to Record High Amid Rate Cut Bets



About The Author

Co-Founder & Chief Editor
Jon Morgan, MBA, LLM, has over ten years of experience growing startups and currently serves as CEO and Editor-in-Chief of Venture Smarter. Educated at UC Davis and Harvard, he offers deeply informed guidance. Beyond work, he enjoys spending time with family, his poodle Sophie, and learning Spanish.
Learn more about our editorial policy
Growth & Transition Advisor
LJ Viveros has 40 years of experience in founding and scaling businesses, including a significant sale to Logitech. He has led Market Solutions LLC since 1999, focusing on strategic transitions for global brands. A graduate of Saint Mary’s College in Communications, LJ is also a distinguished Matsushita Executive alumnus.
Learn more about our editorial policy
Leave a Reply

Your email address will not be published. Required fields are marked *