Unprecedented S&P 500 Highs as Powell Signals Rate Cut in September
The S&P 500 hit a record high for the fifth consecutive session, fueled by Federal Reserve Chair Jerome Powell's testimony hinting at a potential rate cut in September. The index rose to a new peak at 5,577.03, while the Dow added 0.2% and the Nasdaq fell slightly.
Powell acknowledged a cooling labor market and warned against keeping rates too high for too long, signaling a possible rate cut in September. This news boosted investor confidence, with over 72% now expecting a 25 basis point cut next month.
As earnings season kicks off, major banks like JPMorgan Chase, Wells Fargo, and Citigroup are set to report quarterly results. Analysts predict a 10.1% increase in S&P 500 earnings per share for the second quarter, with companies like Intel and Nvidia showing strong gains.
Nvidia saw a 2% rise after an upgrade from Keybanc, while Tesla climbed over 3% thanks to positive reviews from Morgan Stanley. On the flip side, Helen of Troy Ltd plummeted 27% after missing earnings estimates.
In summary, the market is bullish on a potential rate cut in September, strong earnings expectations, and positive signs for companies like Nvidia and Tesla. Stay tuned for more updates as the financial landscape continues to evolve.