Markets Continue Record-Breaking Momentum
U.S. stock indexes advanced Wednesday, building on gains from the previous session as expectations for Federal Reserve rate cuts strengthened. The Dow Jones Industrial Average rose 374 points, or 0.8%. The S&P 500 edged 0.2% higher, and the Nasdaq Composite added 0.1%. Both the S&P 500 and Nasdaq set new intraday records early in the session before retreating slightly.
Investor optimism followed Tuesday’s cooler-than-expected inflation data, which boosted the likelihood of a September rate cut. CME FedWatch Tool data now shows a 99% probability that the Fed will lower its benchmark interest rate next month.
Standout Stock Performances
- AMD gained more than 5%, leading technology stocks higher.
- Apple rose about 1%.
- Paramount Skydance surged over 34%, marking its best day since March 2020.
- Warner Bros Discovery advanced nearly 7% following insider share purchases.
- Webtoon Entertainment jumped almost 90% after strong earnings and a new content deal with Disney.
Small-cap stocks also rallied, with the Russell 2000 climbing 1.4%, benefiting from the potential for lower borrowing costs.
Earnings and Economic Data in Focus
A strong second-quarter earnings season has further supported the market’s rally, according to market strategists. While earnings announcements have slowed, major retail companies are set to report next week.
Attention now turns to Thursday’s Producer Price Index (PPI) report, which will provide another snapshot of inflation trends ahead of the Federal Reserve’s Jackson Hole symposium on August 21–23.
Key Analyst and Policy Commentary
Rick Rieder, BlackRock’s Chief Investment Officer for global fixed income and a potential candidate to replace Fed Chair Jerome Powell, has called for a larger-than-normal rate cut in September. He suggests a 50-basis-point reduction could help align rates with long-term inflation expectations.
Separately, U.S. Treasury Secretary Scott Bessent told Bloomberg he believes the Fed should lower rates by at least 150 basis points over time, starting with a significant cut next month.
Other Notable Market Movers
- Walmart fell 2% after Amazon announced free same-day grocery delivery in 1,000 U.S. locations, with plans to expand to over 2,300 by year’s end.
- Grocery peers Kroger, Albertsons, and Sprouts Farmers Market also traded lower.
- Bullish, a cryptocurrency exchange, soared in its NYSE debut, opening 143% above its IPO price.
- Cava sank 15% after missing revenue estimates and lowering its outlook.
- Capri Holdings jumped over 8% after a JPMorgan upgrade.
Sector Highlights
The communication services and technology sectors both hit new record highs. Top performers included Electronic Arts, Live Nation, Meta, Advanced Micro Devices, and Broadcom.
Related Coverage
- Economy & Market – https://idahonews.co/economy-market/
- National News – https://idahonews.co/national-news/
- Global News – https://idahonews.co/global-news/
- Idaho News – https://idahonews.co/idaho-news-3/
- Opinion – https://idahonews.co/opinion-2/
- Subscribe & Support Idaho News – https://idahonews.co/subscribe-and-support-idaho-news/
About the Author
