U.S. stock markets are witnessing a rise, leading to new records. The S&P 500 and Nasdaq Composite set new highs against a backdrop of declining inflation.
Index Achievements
The S&P 500 closed at 6,445.76, up 1.13%. The Nasdaq Composite ended at 21,681.90, gaining 1.39%. The Dow Jones closed at 44,458.61, adding 483.52 points or 1.10%.
Fed Rate Expectations
The July consumer price index showed a 2.7% rise year-over-year, just below the forecast of 2.8%. These numbers pushed traders to raise the odds of a Fed rate cut in September to 94%.
Market Sustainability Analysis
BCA Research suggests that the rally could continue even if the economy slows down. Analysts warn of potential risks due to economic weakness but expect Fed rate cuts to support the market.
The stock market continues to strengthen amid positive news of declining inflation and expectations of Fed rate cuts. Investors will watch closely for further inflation and economic data.
