Dow Hits Record High as Bonds Rise on Fed Cut Wagers – US Market Wrap

Equities soared, quashing a week of losses and sending the Dow Jones Industrial Average to a record, and bond yields declined as unexpectedly dovish comments by Fed’s Powell swayed investors that rate cuts are all but guaranteed.

By shifting focus toward risks in the jobs market, Powell indicated the Fed may not wait for perfect inflation before cutting rates.

That was enough to cause a broad rally that drove the S&P 500 up the most since May as investors packed into stocks that tend to do well amid lower borrowing costs. All tech megacaps rose, a measure of small firms jumped 4% and banks hit all-time highs. The crypto world bellowed.

As traders raised bets on a September Fed move, Treasuries rose across the curve, with 2-Yr yields sinking 10 basis points. The DXY slid about 1%.