Markets Rally: Dow & Nasdaq Climb 0.24%, S&P 500 Jumps 0.38% as Fed Rate Cut Hopes Soar

Wall Street’s betting big on the Fed folding—and traders are cashing in.

Rate Cut Fever Fuels Gains

The Dow and Nasdaq both ticked up 0.24% while the S&P 500 surged 0.38% as investors doubled down on expectations of an imminent rate cut. Because nothing says ''healthy economy'' like begging for cheaper money, right?

Powell’s Put in Play

Market’s pricing in a dovish pivot—again. Because why stick to a inflation-fighting script when you can just rewrite it mid-performance?

Bulls charge ahead, bears hibernate, and the rest of us wonder when fundamentals became optional.

Rate cut expectations increasing

Expectations for a rate cut later this year have grown as investors interpret the weaker inflation and labor data as giving the Fed more room to ease without stoking price pressures.

The May producer price index rose just 0.1%, below expectations, while jobless claims showed signs of labor market softening. The data, combined with strong demand at a Treasury auction, sent yields lower, with the 10-year note dipping below 4.4%.

Trade tensions remained in focus as President TRUMP reiterated plans to send tariff warning letters to dozens of countries, though he signaled progress with China and other key partners. Despite ongoing uncertainty, investors appear cautiously optimistic.