Wall Street came roaring back on Tuesday. Traders suddenly seemed a lot more confident that the Fed’s going to cut rates soon, and you could feel that energy everywhere. People started shifting their positions ahead of this week’s big inflation data. Treasury yields calmed down, companies sounded a little more hopeful, and the main stock indices just took off right from the opening bell.
Indices Rise Ahead of Key PCE Inflation Report
By the time morning rolled around, the S&P 500 had climbed half a percent. The Dow was up 0.4%, and the Nasdaq stole the show with a solid 1% jump. At the open, the Dow shot up 127 points. S&P and Nasdaq both started strong too, rising 0.27% and 0.45%.
All eyes are on Friday’s Personal Consumption Expenditures (PCE) Price Index—that’s the inflation number the Fed actually cares about. The results from that report will probably set the tone for what happens with rates this December.
Folks investing in bonds maintained their composure, but they were very confident. The 10-year Treasury rate moved higher, climbing to 4.11% from 4.09% earlier, while the 2-year declined little, to 3.52%. Nothing unusual transpired; instead, there was a peaceful hope in the air.
Corporate Earnings and Sector Moves Lift Market Mood
Earnings from corporates helped keep the mood upbeat as MongoDB soared over 25% after smashing its quarterly results. United Natural Foods had a good day too, jumping more than 10% on strong profits.
Not every company walked away smiling. Signet Jewelers slid 3.5% after warning about weaker sales. Procter & Gamble dropped 2.5%, blaming the ongoing government shutdown for expected losses.
In media and entertainment, Warner Bros. Discovery ticked up about 1% after news broke of a second round of buyout offers—this time, big streaming companies are showing interest.
