“`html
The S&P 500 Index is up 0.40%, the Dow Jones is up 0.59%, and the Nasdaq 100 is up 0.44%, marking record highs for both the S&P 500 and Nasdaq. Today’s market surge is attributed to declining Treasury yields and expectations for interest rate cuts, with Treasury Secretary Scott Bessent suggesting a potential cut of 150-175 basis points. The federal funds futures market now indicates a 100% probability of a 25 basis point cut at the September FOMC meeting.
Average monthly payroll growth has slowed to 35,000 between May and July, and the July CPI was reported at 2.7% year-on-year. Earnings for S&P 500 companies are expected to rise 9.1% year-on-year for Q2, significantly higher than initial estimates. International markets also reported gains today, with the Euro Stoxx 50 up 0.86% and Japan’s Nikkei Stock 225 reaching a new record high.
President Trump has extended the tariff truce with China for another 90 days and is set to double tariffs on semiconductor imports while imposing additional taxes on electronics using semiconductors. On the trade front, attention is on the upcoming Trump-Putin summit in Alaska amid ongoing tensions regarding the Russian-Ukrainian war.
“`
