The US stock market saw strong momentum on Wednesday, driven by Treasury Secretary Scott Bessent’s call for substantial interest rate cuts and several corporate developments impacting key sectors of the economy.
The S&P 500 gained 0.32%, the Dow Jones rose 1.04%, and the Nasdaq 100 ended the day up just 0.04%. The main driver was expectations of a more accommodative monetary policy. Bessent stated that current interest rates are “too restrictive” and should be lowered by 150–175 basis points, starting with a 50 bps cut in September.
Following these remarks, the yield on the 10-year Treasury note dropped by 5 bps to 4.237%, while fed funds futures now price in a 100% probability of a 25 bps cut and a 7% probability of a 50 bps cut in September.
Additional market support came from inflation data: July CPI rose 2.7% YoY (below expectations), while slower wage growth signaled a cooling labor market.
Trade policy and geopolitics remain in focus. President Trump extended the tariff truce with China until November but increased tariff pressure on semiconductors, electronics, as well as imports from India and pharmaceuticals. On Friday, markets will watch the Trump-Putin summit in Alaska, though the US president has already tempered expectations, calling it a “trial meeting.”
On the corporate front, notable movers included:
European and Asian markets also finished higher, with Japan’s Nikkei hitting a fresh all-time high.
Bottom line: Markets are getting a strong boost from dovish monetary signals and solid corporate results. However, uncertainty around trade policy and geopolitics could inject volatility in the coming days.
The S&P 500 gained 0.32%, the Dow Jones rose 1.04%, and the Nasdaq 100 ended the day up just 0.04%. The main driver was expectations of a more accommodative monetary policy. Bessent stated that current interest rates are “too restrictive” and should be lowered by 150–175 basis points, starting with a 50 bps cut in September.
Following these remarks, the yield on the 10-year Treasury note dropped by 5 bps to 4.237%, while fed funds futures now price in a 100% probability of a 25 bps cut and a 7% probability of a 50 bps cut in September.
Additional market support came from inflation data: July CPI rose 2.7% YoY (below expectations), while slower wage growth signaled a cooling labor market.
Trade policy and geopolitics remain in focus. President Trump extended the tariff truce with China until November but increased tariff pressure on semiconductors, electronics, as well as imports from India and pharmaceuticals. On Friday, markets will watch the Trump-Putin summit in Alaska, though the US president has already tempered expectations, calling it a “trial meeting.”
On the corporate front, notable movers included:
- Amazon (+1.4%) — announced plans to expand same-day grocery delivery to 2,300 cities by year-end.
- Chipmakers (AMD, NXPI, ON, ALGN) — gained over 3% on optimism over rate cuts.
- Bullish — crypto firm surged to $68 after pricing its IPO at $37.
- Hanesbrands (+3.7%) — extended gains after announcing a $2.2 billion acquisition by Canada’s Gildan (GIL +11.8%).
- C3.ai (+10%) — rallied despite an outlook downgrade from Oppenheimer.
European and Asian markets also finished higher, with Japan’s Nikkei hitting a fresh all-time high.
Bottom line: Markets are getting a strong boost from dovish monetary signals and solid corporate results. However, uncertainty around trade policy and geopolitics could inject volatility in the coming days.
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