(Bloomberg) — Stocks headed toward their best week this year as a handful of economic data did little to alter bets the Federal Reserve will kick off its rate cuts in September.
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Equities extended their advance into a seventh straight session, with the S&P 500 on track for its best performance in such a span since October 2022. Just a week ahead of Jerome Powell’s speech in Jackson Hole, Wyoming, traders hope the Fed Chair will set policy expectations for the remainder of the year. While officials have been able to successfully bring down inflation, the labor market is still a wild card.
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“We look for Powell to signal that given recent progress, the Fed is likely to ease policy next month, without fully committing to the size of the rate cut,” according to TD Securities’ strategists. “We expect a 25 basis-point reduction.”
The S&P 500 hovered near 5,560. Most megacaps gained, with Tesla Inc. leading the charge. Applied Materials Inc. sank after a sales forecast that disappointed investors looking for a bigger payoff from artificial-intelligence spending. Wall Street’s “fear gauge” – the VIX – dropped below 15.
Treasury 10-year yields fell three basis points to 3.88%. The dollar dropped. Gold hit $2,500, bolstered by hopes that the Fed is edging closer to cutting rates.
Fed Chair Powell will speak next Friday at the Kansas City Fed’s Jackson Hole Economic…
