Wall Street Rises Amid Speculation of Federal Reserve Rate Cut

According to BlockBeats, Wall Street experienced gains as inflation data aligned with expectations, intensifying speculation about a potential Federal Reserve rate cut in September. This anticipation led to a rise in stock markets and a decline in short-term bond yields. The S&P 500 index saw all major sectors increase, climbing 1.1% to reach a record high. The Nasdaq 100 index also hit an all-time peak, while the Russell 2000 small-cap index rose by 3%. Although the initial surge in Treasury bonds lost momentum, money markets estimate a 90% probability of a Federal Reserve rate cut next month. The yield on two-year Treasury notes, which are more sensitive to upcoming policy changes, fell by 4 basis points to 3.73%. The U.S. dollar weakened as core inflation in the country rose to its highest level since the beginning of the year. However, the slow rise in commodity prices eased concerns over tariff-driven pressures. In the stock market, renewed bets on low interest rates fueled gains, supported by ongoing enthusiasm for artificial intelligence and strong corporate earnings.