The S&P 500 Index closed up +0.73% on Wednesday, with the Dow Jones up +0.18% and the Nasdaq 100 gaining +1.29%. Positive corporate forecasts, including Arista Networks’ Q3 revenue prediction which exceeded expectations leading to a +17% stock increase, contributed to the rally. Additionally, Apple rose +5% after President Trump announced plans for a $100 billion investment in domestic manufacturing.
Speculation regarding a potential Federal Reserve interest rate cut ahead of the September FOMC meeting surged, with the probability rising to 95% from 40% last Friday, fueled by weaker-than-expected U.S. economic data. The MBA mortgage applications index increased by +3.1% in the week ending August 1, with the average 30-year fixed-rate mortgage decreasing to 6.77%.
In recent tariff developments, President Trump declared that tariffs on U.S. imports from India would double to 50% due to the country’s Russian oil purchases. Bloomberg Economics reports that the average U.S. tariff rate could increase from 13.3% to 15.2% following these announcements.
