Stocks Gain as FOMC Minutes Solifies September Rate Cut – US Market Wrap

Stocks rose as the latest Federal Reserve minutes and a significant downward revision to US payrolls reinforced expectations that officials will cut interest rates in September.

Almost every major group in the S&P 500 advanced, with the index extending its August rally and approaching an all-time high. Short-term Treasuries outperformed, with two-year yields falling nearly 10 basis points before paring the move. Traders are once again pricing in more than one percentage point of easing by the end of the year, beginning next month.
In the run-up to Jerome Powell’s speech in Jackson Hole on Friday, traders scoured minutes from the most recent Fed policy meeting. At their July meeting, several Fed officials acknowledged that there was a plausible case for cutting interest rates before the central bank’s policy committee voted unanimously to keep them unchanged.

The S&P 500 increased to around 5,620. Target increased 10% after ending a string of sales declines in the second quarter, citing higher discretionary spending. Macy’s lowered its sales forecast for the rest of the year.

Treasury 10-year yields fell by one basis point to 3.79%. Oil prices fell to their lowest levels in more than six months.