Wall Street Edges Closer to Record Highs Amid Economic Optimism

Stock market today: Wall Street nears records as hopes of rate cuts persist

NEW YORK (AP) -- U.S. stocks rose Friday after mixed signals on the profits of the big banks And inflation That was not enough to shake Wall Street's conviction that lower interest rates are coming. The S&P 500 index rose 0.6% to close out its fifth week of gains in the past six weeks. The Dow Jones Industrial Average gained 247 points, or 0.6%, and the Nasdaq Composite added 0.6%. All three indexes were on track for all-time highs in afternoon trading but ended below. Bank of New York Mellon rose 5.2%, one of the market's biggest gains after reporting a better-than-analysts-expected spring profit. Nvidia and others Highly influential Big Tech stocks also helped lift the market after a drop the day before, which interrupted its surge amid a frenzy around artificial intelligence technology. Those numbers helped offset a decline at Wells Fargo, which fell 6% despite beating analysts' expectations. The San Francisco-based bank said a key profit metric fell from a year ago and its net interest income could remain in the lower half of the range it had forecast for the full year. In the bond market, which has seen some of the strongest action on Wall Street this week, Treasury yields fluctuated after the latest inflation update. Wholesale prices rose more last month than economists expected, disappointing after data released Thursday showed consumer inflation. It was better than expected. But after some initial fluctuations, Treasury yields calmed and remained lower than they were late Thursday. It will be some time before we know whether yesterday's number or today's was the aberration, said Chris Larkin, managing director of trading and investments at Morgan Stanley's E-Trade. Part of the acceleration in Friday's data could be the result of higher corporate profit margins, which can fluctuate widely and which some analysts have called unrelated to the Federal Reserve's inflation fighters. Another factor that helped keep yields steady was a report suggesting that U.S. households are no longer worried about such high inflation in the future. According to preliminary data from the University of Michigan, U.S. consumers are expecting inflation to be 2.9% for the coming year. This is the second straight month that those expectations have eased. That helps ease concerns about a potential spiral in which expectations of high inflation could prompt U.S. consumers to engage in behavior that pushes inflation higher. That in turn could give the Federal Reserve more evidence of the slowdown in inflation it says it needs to start reducing your main interest ratewhich is at its highest level in more than two decades. After climbing as high as 4.23% following headline inflation reports, the yield on the 10-year Treasury note fell to 4.18% from 4.21% late Thursday. It is down from 4.70% in April as hopes have grown that inflation is slowing enough to convince the Fed to cut rates in the short term. Traders are pricing in a 94% chance that the Federal Reserve will begin cutting rates in September, according to CME Group data. Lower interest rates would ease pressure that has built up on the economy due to the high cost of borrowing to fund foreign exchange transactions. buy housescars or anything on credit cardFed officials, however, have said They want to see more reliable inflation data before acting. Lower interest rates would help all types of companies, and smaller ones could benefit especially greatly as they borrow to grow. Smaller stocks in the Russell 2000 rose more than the S&P 500 on Thursday, snapping a long-running trend, and that continued Friday. The Russell 2000 index rose 1.1%, nearly double the gain of the S&P 500, and capped its best week in eight months. Overall, the S&P 500 rose 30.81 points to 5,615.35. The Dow Jones Industrial Average gained 247.15 points to 40,000.90 and the Nasdaq Composite gained 115.04 points to 18,398.45. Of course, traders have a long history of being premature in terms of forecasts of cuts JPMorgan Chase CEO Jamie Dimon warned Friday that inflation and interest rates could remain higher than the market expects because of rising U.S. government debt and other factors. In overseas stock markets, Japan's Nikkei 225 index lost some of its recent record high and fell 2.4 percent, although it is still up more than 23 percent since the start of the year. The readings were mixed in the rest of Asia and higher in much of Europe. ___ AP reporters Matt Ott and Zimo Zhong contributed to this report.

Stock market today: Wall Street nears records as hopes of rate cuts persist | National News - ExBulletin

NEW YORK (AP) -- U.S. stocks rose Friday after mixed signals on the profits of the big banks And inflation That hasn't really shaken Wall Street's belief that lower interest rates are coming. The S&P 500 index rose 0.6% to close out its fifth week of gains in the past six weeks. The Dow Jones Industrial Average gained 247 points, or 0.6%, and the Nasdaq Composite added 0.6%. All three indexes were on track for all-time highs in afternoon trading but ended below. Bank of New York Mellon rose 5.2%, one of the market's biggest gains after reporting a better-than-analysts-expected spring profit. Nvidia and others Highly influential Big Tech stocks also helped revive the market after a drop the day before, which interrupted its surge amid a frenzy around artificial intelligence technology. Those numbers helped offset a decline at Wells Fargo, which fell 6% despite beating analysts' expectations. The San Francisco-based bank said a key profit metric fell from a year ago and its net interest income could remain in the lower half of the range it had forecast for the full year. In the bond market, which has seen some of the strongest action on Wall Street this week, Treasury yields fluctuated after the latest inflation update. Wholesale prices rose more last month than economists expected, disappointing after data released Thursday showed consumer inflation. It was better than expected. But after some initial fluctuations, Treasury yields calmed and remained lower than they were late Thursday. It will be some time before we know whether yesterday's number or today's was the aberration, said Chris Larkin, managing director of trading and investments at Morgan Stanley's E-Trade. Part of the acceleration in Friday's data could be the result of higher corporate profit margins, which can fluctuate widely and which some analysts have called unrelated to the Federal Reserve's inflation fighters. Another factor that helped keep yields steady was a report suggesting that U.S. households are no longer worried about such high inflation in the future. According to preliminary data from the University of Michigan, U.S. consumers are expecting inflation to be 2.9% for the coming year. This is the second straight month that those expectations have eased. That helps ease concerns about a potential spiral in which expectations of high inflation could prompt U.S. consumers to engage in behavior that pushes inflation higher. That in turn could give the Federal Reserve more evidence of the slowdown in inflation it says it needs to start reducing your main interest ratewhich is at its highest level in more than two decades. After climbing to 4.23% following the headline inflation report, the yield on the 10-year Treasury note fell to 4.18% from 4.21% late Thursday. It is down from 4.70% in April, on hopes that inflation is slowing enough to convince the Fed to cut short-term rates. Traders are pricing in a 94% chance that the Federal Reserve will begin cutting rates in September, according to CME Group data. Lower interest rates would relieve pressure that has built up on the economy due to the high cost of borrowing to fund foreign exchange transactions. buy housescars or anything on credit cardFed officials, however, have said They want to see more reliable inflation data before acting. Lower interest rates would help all types of companies, and smaller ones could benefit especially greatly as they borrow to grow. Smaller stocks in the Russell 2000 rose more than the S&P 500 on Thursday, snapping a long-running trend, and that continued Friday. The Russell 2000 rose 1.1%, nearly double the S&P 500's gain, and capped its best week in eight months. Overall, the S&P 500 rose 30.81 points to 5,615.35. The Dow Jones Industrial Average gained 247.15 points to 40,000.90 and the Nasdaq Composite gained 115.04 points to 18,398.45. Of course, traders have a long history of being premature in terms of forecasts of cuts JPMorgan Chase CEO Jamie Dimon warned Friday that inflation and interest rates could remain higher than the market expects because of rising U.S. government debt and other factors. In overseas stock markets, Japan's Nikkei 225 index lost some of its recent record high and fell 2.4 percent, although it is still up more than 23 percent since the start of the year. The indices were mixed in the rest of Asia and higher in much of Europe. AP reporters Matt Ott and Zimo Zhong contributed to this report.

Stock market today: Wall Street nears records as hopes of rate cuts persist

THE&The P 500 index climbed 0.6% to close out its fifth week of gains in the past six weeks. The Dow Jones Industrial Average gained 247 points, or 0.6%, and the Nasdaq Composite added 0.6%. All three indexes were on track for all-time highs in afternoon trading but ended below. Bank of New York Mellon rose 5.2%, one of the market's biggest gains after reporting a better-than-analysts-expected spring profit. Nvidia and others Highly influential Big Tech stocks also helped revive the market after a drop the day before, which interrupted its surge amid a frenzy around artificial intelligence technology. Those numbers helped offset a decline at Wells Fargo, which fell 6% despite beating analysts' expectations. The San Francisco-based bank said a key profit metric fell from a year ago and its net interest income could remain in the lower half of the range it had forecast for the full year. In the bond market, which has seen some of the strongest action on Wall Street this week, Treasury yields fluctuated after the latest inflation update. Wholesale prices rose more last month than economists expected, disappointing after data released Thursday showed consumer inflation. It was better than expected. But after some initial fluctuations, Treasury yields calmed and remained lower than they were late Thursday. It will be some time before we know whether yesterday's number or today's was the aberration, said Chris Larkin, managing director of trading and investments at Morgan Stanley's E-Trade. Part of the acceleration in Friday's data could be the result of higher corporate profit margins, which can fluctuate widely and which some analysts have called unrelated to the Federal Reserve's inflation fighters. Another factor that helped keep yields steady was a report suggesting that U.S. households are no longer worried about such high inflation in the future. According to preliminary data from the University of Michigan, U.S. consumers are expecting inflation to be 2.9% for the coming year. This is the second straight month that those expectations have eased. That helps ease concerns about a potential spiral in which expectations of high inflation could prompt U.S. consumers to engage in behavior that pushes inflation higher. That in turn could give the Federal Reserve more evidence of the slowdown in inflation it says it needs to start reducing your main interest ratewhich is at its highest level in more than two decades. After climbing to 4.23% following the headline inflation report, the yield on the 10-year Treasury note fell to 4.18% from 4.21% late Thursday. It is down from 4.70% in April, on hopes that inflation is slowing enough to convince the Fed to cut short-term rates. Traders are pricing in a 94% chance that the Federal Reserve will begin cutting rates in September, according to CME Group data. Lower interest rates would relieve pressure that has built up on the economy due to the high cost of borrowing to fund foreign exchange transactions. buy housescars or anything on credit cardFed officials, however, have said They want to see more reliable inflation data before acting. Lower interest rates would help all types of businesses, and small companies could benefit especially because they borrow to grow. Small stocks in the Russell 2000 rose more than the S&The P 500 index rose on Thursday, breaking a long-standing trend that continued on Friday. The Russell 2000 gained 1.1%, nearly double the S&The P 500 advanced and closed its best week in eight months. In total, the S&The P 500 index rose 30.81 points to 5,615.35 points. The Dow Jones Industrial Average gained 247.15 points to 40,000.90 points and the Nasdaq Composite gained 115.04 points to 18,398.45 points. Of course, traders have a long history of being premature in terms of forecasts of cuts JPMorgan Chase CEO Jamie Dimon warned Friday that inflation and interest rates could remain higher than the market expects because of rising U.S. government debt and other factors. In overseas stock markets, Japan's Nikkei 225 index lost some of its recent record high and fell 2.4 percent, although it is still up more than 23 percent since the start of the year. The readings were mixed in the rest of Asia and higher in much of Europe. ___ AP reporters Matt Ott and Zimo Zhong contributed to this report.

Stock market today: Wall Street continues with another week of gains - ExBulletin

NEW YORK (AP) -- U.S. stocks ended higher after mixed signals on big bank profits and inflation failed to shake Wall Street's belief that lower interest rates are on the way. The S&P 500 index rose 0.6% Friday in a broad-based rally, capping its fifth winning week in the past six. The Dow Jones Industrial Average climbed 0.6% and the Nasdaq Composite Index gained 0.6%. Smaller company stocks outperformed the rest of the market. Treasury yields wavered in the bond market but remained slightly lower after a report showed inflation at the big-dollar level was worse than expected last month. THIS IS BREAKING NEWS. The previous AP story follows below. NEW YORK (AP) -- U.S. stocks headed for record highs Friday after mixed signals on the profits of the big banks And inflation That hasn't really shaken Wall Street's belief that lower interest rates are coming. The S&P 500 index rose 1.2% as part of a broad rally, capping its fifth week of gains in the past six. The Dow Jones Industrial Average rose 431 points, or 1.1%, and the Nasdaq Composite gained 1.4% with less than an hour to go. All three indexes are on track to set all-time highs. Bank of New York Mellon rose 5.4%, one of the market's biggest gains after reporting spring profit that beat analysts' expectations. Nvidia and others Highly influential Big Tech stocks also helped revive the market after a drop the day before, which interrupted its surge amid a frenzy around artificial intelligence technology. Those numbers helped offset a slide at Wells Fargo, which fell 5.8%, even though the San Francisco-based bank reported profit that beat analysts' expectations. It said a key measure of its underlying profit fell from a year ago and its net interest income could remain in the lower half of the range it had forecast for the full year. In the bond market, which has seen some of the strongest action on Wall Street this week, Treasury yields fluctuated after the latest inflation update. Wholesale prices rose more last month than economists expected, disappointing after data released Thursday showed consumer inflation. It was better than expected. But after some initial fluctuations, Treasury yields calmed and remained lower than they were late Thursday. It will be some time before we know whether yesterday's number or today's was the aberration, said Chris Larkin, managing director of trading and investments at Morgan Stanley's E-Trade. Part of the acceleration in Friday's data could be the result of higher corporate profit margins, which can fluctuate widely and which some analysts have called unrelated to the Federal Reserve's inflation fighters. Another factor that helped keep yields steady was a report suggesting that U.S. households are no longer worried about such high inflation in the future. According to preliminary data from the University of Michigan, U.S. consumers are expecting inflation to be 2.9% for the coming year. This is the second straight month that those expectations have eased. That has helped ease concerns about a potential spiral in which expectations of high inflation could prompt U.S. consumers to engage in behavior that pushes inflation higher. That in turn could give the Federal Reserve more evidence of the slowdown in inflation it says it needs to start reducing your main interest ratewhich is at its highest level in more than two decades. After climbing to 4.23% following the headline inflation report, the yield on the 10-year Treasury note fell to 4.18% from 4.21% late Thursday. It is down from 4.70% in April, as hopes have grown that inflation is slowing enough to convince the Fed to cut rates in the short term. Traders are pricing in a 94% chance that the Federal Reserve will begin cutting rates in September, according to CME Group data. Lower interest rates would relieve pressure that has built up on the economy due to the high cost of borrowing to fund foreign exchange transactions. buy housescars or anything on credit cardFed officials, however, have said They want to see more reliable inflation data before acting. Lower interest rates would help all types of companies, and smaller ones could benefit especially greatly as they borrow to grow. The small stocks in the Russell 2000 rose more than the S&P 500 on Thursday after encouraging data on consumer inflation, snapping a long-running trend that continued Friday. The Russell 2000 index rose 1.4% and is on track for its best week since November. Of course, traders have a long history of being premature in terms of forecasts of cuts JPMorgan Chase CEO Jamie Dimon warned Friday that inflation and interest rates could remain higher than the market expects because of rising U.S. government debt and other factors. In overseas stock markets, Japan's Nikkei 225 index lost some of its recent record high and fell 2.4 percent, although it is still up more than 23 percent since the start of the year. The indices were mixed in the rest of Asia and higher in much of Europe. ___ AP reporters Matt Ott and Zimo Zhong contributed to this report.

Stock market today: Wall Street rolls to the edge of records as hopes remain for cuts to rates

NEW YORK (AP) -- U.S. stocks rose Friday after some mixed signals on big banks' profits and inflation did little to dent Wall Street's belief that easier interest rates are on the way. The S&P 500 climbed 0.6% to close its fifth winning week in the last six. The Dow Jones Industrial Average rose 247 points, or 0.6%, and Nasdaq composite added 0.6%. All three indexes had been on track to set all-time highs in afternoon trading but finished shy of them. Bank of New York Mellon climbed 5.2% for one of the market's bigger gains after it reported better profit for the spring than analysts expected. Nvidia and other highly influential Big Tech stocks also helped lift the market after a slide the prior day, which interrupted their rocket ride higher amid a frenzy around artificial-intelligence technology. They helped offset a drop for Wells Fargo, which sank 6% even though the San Francisco-based bank reported stronger profit than analysts expected. It said a key underlying measure of profit fell from a year ago and that its net interest income could remain in the bottom half of the range it had forecast for the full year. In the bond market, which has been home to some of Wall Street's strongest action this week, Treasury yields yo-yoed after the release of the latest update on inflation. It said prices rose more at the wholesale level last month than economists expected, which was a letdown after data on Thursday said inflation at the consumer level was better than expected. But after a couple initial swings, Treasury yields calmed and remained lower than they were late Thursday. "It's still going to take some time before we know whether yesterday's number or today's was the aberration," said Chris Larkin, managing director of trading and investing at E-Trade from Morgan Stanley. Some of the acceleration in Friday's data could be the result of higher profit margins for businesses, which can swing sharply and some analysts called irrelevant to the inflation fighters at the Federal Reserve. Also helping to keep yields anchored was a report suggesting U.S. households aren't as fearful about inflation staying so high in the future. Over the coming year, U.S. consumers are forecasting inflation of 2.9%, according to preliminary data from the University of Michigan. It's the second straight month such expectations have eased. That helps calm worries about a potential spiral where expectations for high inflation could drive U.S. consumers toward behavior that would push inflation even higher. That in turn could give the Federal Reserve more of the evidence of slowing inflation that it says it needs to begin cutting its main interest rate, which is at its highest level in more than two decades. After climbing as high as 4.23% following the wholesale inflation report's release, the 10-year Treasury yield settled back down to 4.18% from 4.21% late Thursday. It's down from 4.70% in April as hopes have risen that inflation is lowing enough momentum to convince the Fed to cut short-term rates. Traders are banking on a 94% probability that the Federal Reserve will start easing rates in September, according to data from CME Group. Lower interest rates would release pressure that's built up on the economy because of how expensive it's become to borrow money to buy houses, cars, or anything on credit cards. Fed officials, though, have been saying they want to see "more good data" on inflation before making a move. Easier interest rates would help all types of businesses, and smaller companies could see particularly big benefits because of their borrowings to grow. The smaller stocks in the Russell 2000 rose more than the S&P 500 index on Thursday, breaking a longstanding trend, and that continued on Friday. The Russell 2000 rallied 1.1%, nearly double the S&P 500's gain, and closed out its best week in eight months. All told, the S&P 500 rose 30.81 points to 5,615.35. The Dow Jones Industrial Average gained 247.15 to 40,000.90, and the Nasdaq composite gained 115.04 to 18,398.45. Of course, traders have a long history of being premature about forecasting cuts to rates. JPMorgan Chase CEO Jamie Dimon warned Friday that inflation and interest rates may stay higher than the market expects because of the U.S. government's growing debt and other factors. In stock markets abroad, Japan's Nikkei 225 gave back some of its recent record-breaking run and fell 2.4%, though it's still up more than 23% for the year so far. Indexes were mixed across the rest of Asia and higher in much of Europe.

Stock market today: Wall Street rolls toward records as it nears the close of another winning week

NEW YORK (AP) -- U.S. stock indexes are rallying toward records Friday as they close out their latest winning week following some mixed signals on big banks' profits and on inflation. The S&P 500 was up 0.9% in midday trading and on track to top its all-time high set on Wednesday. The Dow Jones Industrial Average was up 342 points, or 0.9%, as of 11:50 a.m. Eastern time, and the Nasdaq composite was 1.1% higher. Bank of New York Mellon climbed 4.9% for one of the market's bigger gains after it reported better profit for the spring than analysts expected. Nvidia and several other highly influential Big Tech stocks also helped lift the market after a rare slide the prior day, which interrupted their rocket ride higher amid a frenzy around artificial-intelligence technology. They helped offset a drop for Wells Fargo, which sank 6.8% even though the San Francisco-based bank reported stronger profit than analysts expected. It said a key underlying measure of profit fell from a year ago and that its net interest income could remain in the bottom half of the range it had forecast for the full year. In the bond market, which has been home to some of Wall Street's strongest action this week, Treasury yields yo-yoed after the release of the latest update on inflation, which said prices rose more at the wholesale level last month than economists expected. It's a letdown following Thursday's report that said inflation at the consumer level last month was better than expected. But after a couple initial swings, Treasury yields calmed and remained lower than they were late Thursday. "It's still going to take some time before we know whether yesterday's number or today's was the aberration," said Chris Larkin, managing director of trading and investing at E-Trade from Morgan Stanley. Some of the acceleration in Friday's data could be the result of higher profit margins for businesses, which can swing sharply and some analysts called irrelevant to the inflation fighters at the Federal Reserve. Also helping to keep yields anchored was a report suggesting U.S. households aren't as fearful about inflation staying so high in the future. Over the coming year, U.S. consumers are forecasting inflation of 2.9%, according to preliminary data from the University of Michigan. It's the second straight month such expectations have eased, which can be a big deal to the Federal Reserve. The fear is expectations for high inflation by U.S. consumers could drive behavior that would push it even higher and create a self-fulfilling cycle. After climbing as high as 4.23% following the wholesale inflation report's release, the 10-year Treasury yield settled back down to 4.19% from 4.21% late Thursday. The two-year yield, which moves more closely with expectations for Fed action, eased to 4.47% from 4.51% late Thursday. Traders are banking on a 94% probability that inflation is slowing enough for the Federal Reserve to begin cutting its main interest rate in September, according to data from CME Group. Wall Street has been hoping for cuts to the Fed's main interest rate, which is sitting at its highest level in more than two decades. Lower interest rates would release pressure that's built up on the economy because of how expensive it's become to borrow money to buy houses, cars, or anything on credit cards. Fed officials, though, have been saying they want to see "more good data" on inflation before making a move. Easier interest rates would help all types of businesses, and smaller companies could see big benefits because of how much they borrow to grow. The smaller stocks in the Russell 2000 pulled decisively higher above their larger counterparts in the S&P 500 index on Thursday following the encouraging data on inflation data at the consumer level, and that continued on Friday. The Russell 2000 rallied 1.3% to lead the market and is on pace for its best week since November. Of course, traders have a long history of being premature about forecasting cuts to rates. JPMorgan Chase CEO Jamie Dimon warned Friday that inflation and interest rates may stay higher than the market expects because of the U.S. government's spiraling debt and other factors. In stock markets abroad, Japan's Nikkei 225 gave back some of its recent record-breaking run and fell 2.4%, though it's still up more than 23% for the year so far. Indexes were mixed across the rest of Asia and higher in much of Europe.

Wall Street closes higher on bets for Fed rate cut

Wall Street closed higher on Friday with the S&P 500 and Dow Jones hitting intraday record highs, driven by expectations of a Federal Reserve rate cut in September. Major tech stocks like Apple and Nvidia rebounded, while big banks reported mixed results, causing sector declines. The small-cap Russell 2000 and mid-cap indexes continued their rally, signaling a positive market rotation.Wall Street closed higher on Friday, with the S&P 500 and Dow Jones Industrial Average hitting intraday record highs, on bets that the U.S. Federal Reserve will cut interest rates in September, while big banks fell after reporting mixed results. Some of the market's most valuable companies bounced back after dipping in the previous session. Apple and Nvidia each climbed more than 1%. The S&P 500 and Dow surged to all-time highs before giving up much of those gains by the close. JPMorgan Chase's second-quarter profit was lifted by rising investment banking fees. However, shares of the world's largest bank dipped 1.2%. Wells Fargo tumbled 6% after the lender missed estimates for quarterly interest income, while Citigroup fell 1.8% despite reporting a surge in investment banking revenue. The S&P 500 banks index lost 1.5%. The small-cap Russell 2000 rallied for a third straight day, gaining 1.1% and reaching its highest since 2022, while the S&P 400 Mid Cap index rose 0.9%. The two indexes have lagged the S&P 500 this year. "That rotation into small- and mid-caps is still continuing and that's a positive sign overall," said Ryan Detrick, chief market strategist at Carson Group. The most traded stock in the S&P 500 was Tesla, with $38 billion worth of shares exchanged during the session. The electric car maker jumped 3%. The S&P 500 climbed 0.55% to end the session at 5,615.35 points. The Nasdaq gained 0.63% at 18,398.45 points, while Dow Jones Industrial Average rose 0.62% to 40,000.90 points. For the week, the S&P 500 rose 0.9%, the Nasdaq added 0.2% and the Dow rose 1.6%. With stock indexes trading around record highs, investors are betting on strong profit growth from companies beyond Nvidia and other heavyweights that have benefited from explosive growth in artificial intelligence computing. Analysts expect second-quarter earnings for S&P 500 firms to jump 9.6%, with strong growth from technology companies but declining earnings in real estate, industrials and materials, LSEG IBES data showed. "The thematic appeal of the AI story is still very much there," said Zachary Hill, head of portfolio management at Horizon Investments in Charlotte, North Carolina. "We just need to see an inflection in earnings growth coming from the rest of the market, and that's something that we're going to be watching for quite intently over the next couple weeks." Data showed producer prices were slightly hotter-than-expected in June but that did little to change bets on the first rate cut in September. The report follows data showing a surprise fall in U.S. consumer prices on Thursday. Traders are betting on a 94% chance of a rate cut by September, up from 78% a week ago, according to CME Group's FedWatch. Advancing issues outnumbered falling ones within the S&P 500 by a 4.1-to-one ratio. The S&P 500 posted 62 new highs and no new lows; the Nasdaq recorded 170 new highs and 36 new lows. Volume on U.S. exchanges was relatively light, with 11.3 billion shares traded, compared to an average of 11.6 billion shares over the previous 20 sessions.

Wall Street closes higher on bets for Fed rate cut

July 12 (Reuters) - Wall Street stock indexes closed higher on Friday, on bets that the U.S. Federal Reserve will cut interest rates in September, while big banks fell after reporting mixed results. Some of the market's most valuable companies bounced back after dipping in the previous session, with rallies by Apple and Nvidia. JPMorgan Chase's second-quarter profit was lifted by rising investment banking fees. However, shares of the world's largest bank dipped. Wells Fargo tumbled after the lender missed estimates for quarterly interest income, while Citigroup fell despite reporting a surge in investment banking revenue. The small-cap Russell 2000 rallied for a third straight day and reached the highest since 2022, while the S&P 400 Mid Cap index also jumped. The two indexes have lagged the S&P 500 this year. "That rotation into small- and mid-caps is still continuing and that's a positive sign overall," said Ryan Detrick, chief market strategist at Carson Group. According to preliminary data, the S&P 500 gained 31.92 points, or 0.57%, to end at 5,616.46 points, while the Nasdaq Composite gained 113.58 points, or 0.62%, to 18,396.98. The Dow Jones Industrial Average rose 260.02 points, or 0.65%, to 40,013.77. With stock indexes trading around record highs, investors are betting on strong profit growth from companies beyond Nvidia and other heavyweights that have benefited from explosive growth in artificial intelligence computing. Analysts expect second-quarter earnings for S&P 500 firms to jump 9.6%, with strong growth from technology companies but declining earnings in real estate, industrials and materials, LSEG IBES data showed. "The thematic appeal of the AI story is still very much there," said Zachary Hill, head of portfolio management at Horizon Investments in Charlotte, North Carolina. "We just need to see an inflection in earnings growth coming from the rest of the market, and that's something that we're going to be watching for quite intently over the next couple weeks." Data showed producer prices were slightly hotter-than-expected in June but that did little to change bets on the first rate cut in September. The report follows data showing a surprise fall in U.S. consumer prices on Thursday. Traders are betting on a 94% chance of a rate cut by September, up from 78% a week ago, according to CME Group's FedWatch. (Reporting by Noel Randewich in Oakland, Calif. and Medha Singh and Ankika Biswas in Bengaluru; Editing by Saumyadeb Chakrabarty, Pooja Desai and Richard Chang)

Stock market today: Dow closes above 40,000 as rally breaks out beyond mega-cap tech | Business Insider India

Stocks jumped to end the week, with the Dow Jones Industrial Average rallying more than 200 points to close above 40,000 for the first time since mid-May. Investors cheered the broadening of a 2024 stock-market rally that has been largely concentrated with mega-cap tech names associated with the AI trade. Every sector of the S&P 500 rose on Friday, with 90% of the names in the index posting gains. Small-caps also jumped for the second day in a row, as the Russell 2000 saw a 1% return after surging 4% on Thursday. Behind the rally in encouraging data that's paving the way for a rate cut in September. Consumer prices rose less than expected last month, while wholesale inflation was hotter, though only slightly and not enough to derail a coming rate cut, market pros said Friday. According to the CME FedWatch Tool, markets see nearly 90% odds the Federal Reserve dials back interest rates at the September FOMC meeting. Odds of a jumbo rate cut of 50 basis points at the December meeting have also risen, with traders placing the strongest odds on the fed funds rate dropping to 4.50%-4.75% at the final meeting of the year. Here's where US indexes stood at the 4:00 p.m. closing bell on Friday: Bond yields have tumbled as the market adjusts to the favorable data and fresh outlooks for rates. The rate-sensitive two-year Treasury note has dropped by about 14 basis points in a week and the 10-year bond is down over eight basis points in that time. The 10-year fell to 4.182% on Friday. As the rate outlook firms up, investors see greater potential for stocks that were hampered by tighter Fed policy to be able to gain, soothing some fears of heavy market concentration among the likes of Nvidia and other tech stalwarts. Here's what else happened today: