US Market Close: Stocks and Bonds Rise on Rate Cut Bets, Big Tech Leads Gains

Market Rally Driven by Rate Cut Expectations

• 📈 Stocks and bonds saw gains as traders increased bets on Federal Reserve rate cuts, particularly after weak labor data.
• 💡 Investors are now pricing in a high probability of a Fed cut in September, with at least two reductions projected for 2025.
• 📉 Bonds experienced a significant bounce, with the 30-year yield nearing 5% after a prior slide.

Big Tech Outperforms Amidst Broader Market Movement

• 🚀 Alphabet (Google) hit a record high following news that it would not be forced to sell its Chrome business, boosting the Nasdaq.
• 🍎 Apple Inc. also contributed to gains with plans to launch an AI-powered search tool for Siri.
• 📊 While the S&P 500 saw mixed performance, with most shares slipping, the Nasdaq significantly outperformed.

Sector Performance and Key Movers

• 🟢 Communication services and technology sectors led the gains, largely driven by Alphabet and Apple respectively.
• 🔴 Energy and industrial sectors experienced notable declines during the trading session.
• 🛍️ Macy's surged over 20% after reporting strong second-quarter earnings and boosting its full-year forecast, despite warning of a fickle consumer.

Notable Earnings and After-Hours Trading

• 📉 Salesforce Inc. shares fell in after-hours trading despite reporting second-quarter results that met or slightly exceeded analyst expectations, with guidance for the current quarter and full year also largely in line.
• ⚠️ Intuitive Surgical and ConocoPhillips were among the top decliners in the S&P 500 due to cautious executive comments and lower crude price expectations, respectively.
• 💻 Hewlett Packard Enterprise and GitLab also saw shares drop in after-hours trading following their respective earnings reports and outlooks, with concerns about future performance.
• 👕 American Eagle Outfitters shares rallied in after-hours trading, beating revenue estimates and showing positive momentum from marketing campaigns.