Powell Stokes Rate-Cut Bets & Stocks Maintain Gains – Europe Market Wrap

As investors got ready for the Fed to lower interest rates, stocks increased. US market futures suggested that the S&P 500 will continue to rise after setting a record for the 36th time this year.

Along with futures on the S&P 500 and Nasdaq 100, the benchmark Euro Stoxx 600 index also increased slightly as traders analysed Fed Chairman Powell’s remarks regarding the US economy. Two rate decreases in 2024 are still anticipated by swap dealers.

Two-year Treasury yields were trading close to a three-month low, which sparked a widespread prediction that the US yield curve would normalise towards a steeper slope. The trade is based on the theory that longer-dated yields rise in response to fiscal spending, while short-term assets’ yields decrease in response to actual rate reductions.

Tuesday saw the S&P 500 rise for a sixth straight session, marking its longest winning run since January. Powell’s statements to legislators on Tuesday highlighted growing indications of a weakening job market. A record was also set by the Nasdaq 100.