Investing.com: S&P 500 Rises as Fed Signals Rate Cut in September
The S&P 500 closed higher on Wednesday as the minutes of the Federal Reserve's July meeting bolstered expectations for a rate cut next month. Despite concerns about the economy following softer labor market data, the index rose 55 points, or 0.1%, while the index rose 0.4%, and the rose 0.6%.
Fed members gave the clearest signal yet of a rate cut in September, with the "vast majority" of policymakers indicating that easing policy may be appropriate if inflation progress continues. Around 63% of traders expect a rate cut next month, according to Investing.com's data. The minutes were released just days before Chair Jerome Powell's speech at the economic symposium at Jackson Hole on Friday.
In other news, the Bureau of Labor Statistics revised down March 2024's employment gains by 818,000 positions, leading to cautious trading as investors seek clues about the Fed's intentions at its next policy meeting in September. Goldman Sachs forecasts a downward revision in nonfarm payroll data.
Target and Keysight Technologies saw stock gains, while Macy's and La-Z-Boy faced slumps in earnings. Chinese e-commerce firm JD.com's stock fell after Walmart announced plans to sell its stake, while Ford Motor Company saw a slight increase after scaling back its EV plans.
In conclusion, the Federal Reserve's signaling of a potential rate cut next month has impacted various sectors of the market. Investors should be cautious and stay updated on economic indicators and corporate earnings reports to make informed decisions about their finances.