Equity Bull Run Powers Ahead, Apple Rises 5% – US Market Wrap
Equity buyers trudged back into the market, with a rally in the largest techs driving gains. Short-dated Treasury yields declined on bets the Fed will soon be able to cut rates. The dollar declined.
The incentive to buy the dip in stocks has rarely been this strong, with the S&P 500 up almost 1% after a brief decline this week. The Nasdaq 100 rose 1.3%. Apple jumped 5.1%, with Trump set to declare the company will commit to a fresh $100 bln US investment as it seeks to avoid punishing tariffs on iPhones.
A soft $42 bln sale of 10-Yr Treasuries saw a subdued response, with yields little changed at 4.22%. The yield on 2-Yr notes fell three BPS to 3.70%. Fed’s Cook said the July jobs data implied a “turning point” for the economy. Fed’s Kashkari said a slowdown may make a rate cut appropriate in the near term.
Trump told European allies he’s planning to meet with Putin and Zelenskiy as soon as next week in another attempt to bring peace between the two nations. The US imposed a further 25% tariff on Indian goods over its continuing purchases of Russian energy.
