US Stock Benchmark Sees Its Best Three-Day Advance Since November – US Market Wrap

Stocks experienced their best three-day rally since November, fueled by expectations that the Federal Reserve will be able to cut interest rates this year.

The S&P 500 rose 1% after exceeding its 50-day average price, which many chartists believe is critical to maintaining positive sentiment. A strong earnings season fueled optimism following a market correction that made some sectors appealing. While the lower-than-average trading volume raised concerns about the advance’s sustainability, most industries benefited.

Traders also kept an eye on recent geopolitical developments, with Israel rejecting Hamas’ statement that it had accepted a cease-fire proposal to end the fighting in Gaza. Oil closed higher.

Fed’s Barkin expects high interest rates to further slow the economy and keep inflation below the 2% target. His New York counterpart, Williams, stated that rate cuts will occur at some point, but the timing will be determined by the overall data.