Dow Jones gains 1.5% in a single day as rate cut hopes surge.
Easing US Retail Sales data reignited market bets of a September rate cut.
Dow Jones sets a new record high for a second day in a row.
The Dow Jones Industrial Average (DJIA) surged to a second record-setting day in a row, climbing over 600 points to chalk in a fresh all-time peak above 40,850 as market sentiment buries the needle even further into hopes of a September rate cut from the Federal Reserve (Fed).
US Retail Sales slumped flat in June, printing at 0.0% in-line with forecasts and falling from the previous month’s revised 0.3% uptick, signaling that the US domestic economy is continuing to soften and prompting a broad-market rush into expectations of a September rate cut.
According to the CME’s FedWatch Tool, rate markets have a September rate trim fully priced in, with functionally 100% odds of at least a quarter-point rate cut when the Federal Open Market Committee (FOMC) meets on September. The FOMC’s upcoming rate call on July 31 is still broadly expected to be a hold as policymakers wait for a few more months of data to confirm inflation is easing to targets before pulling the trigger.
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