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The S&P 500 Index is up 0.09% and the Nasdaq 100 is up 0.37%, both reaching new all-time highs, driven by expectations of Fed interest rate cuts after a weaker-than-expected US consumer sentiment report for September. The Dow Jones is down 0.31%. The University of Michigan’s consumer sentiment index fell 2.8 points to 55.4, lower than the expected 58.0.
The markets are currently pricing in a 100% chance of a 25 basis point rate cut at the upcoming Federal Open Market Committee (FOMC) meeting on September 16-17, and a total of 75 basis points in rate cuts by the end of the year.
Today’s 10-year T-note yield increased by 6 basis points to 4.06% as higher bond yields limit stock upside, following a 1% rally in WTI crude oil, which has raised inflation expectations amidst US proposals for tariffs on oil purchases from Russia.
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