On Friday, the S&P 500 Index closed up by 1.52%, the Dow Jones Industrial Average rose 1.89%, and the Nasdaq 100 increased by 1.54%. This surge followed comments from Fed Chair Powell indicating a potential rate cut, which increased the chances for the September 29-30 FOMC rate cut to 81%, up from 71%. The 10-year T-note yield fell to 4.24%, a one-week low.
US Vice President Vance reported ongoing negotiations for a peace deal in Ukraine involving security guarantees and territory disputes. Additionally, President Trump expanded steel and aluminum tariffs to over 400 consumer items, effective Monday, while suggesting tariffs on semiconductors might reach up to 300% based on manufacturing locations.
International markets also saw gains, with the Euro Stoxx 50 up 0.48% and China’s Shanghai Composite rising by 1.45%. Chipmakers, airlines, and homebuilders benefited in the US market, while telecommunication stocks faced pressure, with AT&T and T-Mobile both down more than 2%.
