S&P 500 Climbs 1% as Dip Buyers Fuel Stock Rebound

Treasuries Hold Steady Amid Divided Sentiment on Fed Rate Cuts
Focus Shifts to Inflation Data and Trump-Harris Debate

A fresh wave of dip buying propelled stocks higher after an initial selloff triggered by economic worries. Investors are now turning their attention to upcoming inflation data, looking for signals on the Federal Reserve’s approach to rate cuts.

• The S&P 500 rose approximately 1%, with 90% of its shares advancing. This follows the index’s worst September start since 1953. Tesla Inc. and Nvidia Corp. led the gains among megacaps, while Apple Inc. lagged ahead of its product launch event. The VIX, Wall Street’s volatility gauge, dropped below 20.
• Traders reduced the probability of a half-point rate cut at the Fed’s September meeting to 20% from 50% last week, amid stabilizing US inflation expectations and concerns over rising delinquencies.
• Key indexes were also on the rise: the Nasdaq 100 gained 1.1%, the Dow Jones Industrial Average added 1.5%, and the Russell 2000 increased by 1.1%.

Corporate Highlights:

• Big Lots Inc. (BIG) has filed for bankruptcy protection and plans to sell its assets through a court-supervised process.
• PayPal Holdings Inc. (PYPL) partnered with Shopify Inc. to process some of the payment company’s debit and credit transactions.
• B. Riley Financial Inc. (RILY) is planning to sell assets and secure financing to address its debt burden.
• Starboard Value LP (Private) is pushing News Corp. to eliminate its dual-class share structure and may take further action if the media company doesn’t engage.

Treasury 10-year yields remained steady at 3.71%, and the dollar gained. Bitcoin surged past $56,000, continuing its upward trend.