Dow surges by more than 700 points as investors bet on September rate cut
CNN
Stocks surged Tuesday as Wall Street raised its bets that sky-high borrowing rates could come down in the fall.
Stocks surged Tuesday as Wall Street raised its bets that sky-high borrowing rates could come down in the fall. The Dow surged by more than 700 points, or 1.8%, hitting a fresh all-time high and extending its winning streak. The S&P 500 gained 0.5% and the Nasdaq Composite was 0.1% higher. Investors were feeling buoyant after a round of robust corporate earnings and a better-than-expected consumer spending report. The Commerce Department reported Tuesday that US retail sales were stronger than expected in June, after mostly flat readings for the first half of the year. The figures are adjusted for seasonal swings but not inflation. The show of resilience has helped raise optimism that the Fed will begin cutting rates in September. Wall Street now sees a near 100% expectation that the Federal Reserve will cut interest rates then, according to the CME FedWatch Tool. Gold futures rose 1.4% after hitting a record high earlier in the day.
Nippon Steel is expected to re-file its application for a national security review by American regulators of its $15 billion takeover bid of US Steel, sources familiar with the matter told CNN on Tuesday, buying Japan’s largest steelmaker an additional 90 days to close its acquisition of an American rival after political opposition emerged in an election year.
So far, the attacks that targeted Iran-backed Lebanese militant group Hezbollah members through their pagers have had devastating consequences. At least nine people, including an eight-year-old girl, were killed, and at least 2,800 were wounded. Over 150 of those injured are in critical condition, according to the Lebanese health minister.