Stocks surged on Monday, with the S&P 500 notching its best three-day run of the year. Wall Street continued to rally following a weaker-than-expected jobs report, leading to speculation of an earlier rate cut by the Federal Reserve.
The S&P 500 gained 1%, the Nasdaq Composite rose 1.2%, and the Dow Jones Industrial Average increased by almost 0.5% as investors placed their bets on a September rate cut. In fact, more than two-thirds of traders are now expecting at least two rate cuts by the end of the year.
With Fed officials now free to speak openly without being bound by a pre-meeting blackout period, their remarks could potentially influence the timing of rate cuts. This has added to the uncertainty in the market as investors try to gauge the Fed’s next move.
On the corporate front, Disney took center stage for earnings season, while Apple shares dropped after Warren Buffett revealed a reduction in holdings. Boeing also faced a setback as its stock sank following a new FAA probe. However, Boeing reassured investors that the probe is not an immediate safety concern for its in-service fleet.
Overall, the stock market seems to be on a rollercoaster ride as investors navigate through the latest economic data and corporate news. All eyes will be on the Fed’s upcoming decisions as the market waits to see how the central bank will respond to the changing economic landscape.
