Wall Street closes higher on bets for Fed rate cut

Wall Street closes higher on bets for Fed rate cut

By Noel Randewich and Medha Singh

Fri July 12, 2024 4:27 PM

This is one of the reasons the market is always so fascinating. You just never know what’s going to happen. Yesterday, there was a big sell off despite much increased optimism for rate cuts, but on the consensus that though the rate cuts should have been good news, it was taken that tech had already gone as high as it would so everyone rotated into industrials. Today, the consensus was the opposite with everyone buying tech, especially Tesla, like crazy on a second day of exuberance over a September rate cut, today with odds jumping to 94% vs 78% a week ago.

Both the Dow and S&P reached intraday records around 2 pm, the Dow gaining almost 500 points, before both declining, the Dow closing at a plus 247. Even the Nasdaq was up almost 300 at 2 pm before also declining. Still, it was considered a positive sign that investors continued rotating into the Dow and the forecast for Q2 earnings growth has shot up to 9.6%. Volume was close to average at 11.3 billion. 

DJ: 39,753.75  +32.39       NAS: 18,283.41  -364.04       S&P: 5,584.54  -49.37   7/11

DJ: 40,000.90  +247.15     NAS: 18,398.45  +115.04       S&P: 5,615.35  +30.81  7/12  

Fri 7-12-24 4:27 pm Wall Street closes higher on bets for Fed rate cut | Reuters