Wall Street Extends $3 Trillion Rally as Markets Eye Fed Rate Cuts
Stocks climbed for the eighth consecutive day, marking the longest winning streak of 2024, fueled by optimism that the Federal Reserve may soon signal a shift toward cutting interest rates. With the central bank nearing a pivotal decision, all eyes are on Fed Chair Jerome Powell, who is expected to provide clarity on the possibility of a rate cut in September. The S&P 500 continued its rally, adding over $3 trillion in value since its August 5 low.
In corporate news, Advanced Micro Devices Inc. agreed to acquire server maker ZT Systems for $4.9 billion, while Estée Lauder disappointed with its sales forecast. Retail giants Lowe’s, Target, and TJX are among those reporting this week. Meanwhile, Treasury 10-year yields dipped slightly to 3.86%, and oil prices dropped by 3%.
On the international front, Secretary of State Antony Blinken announced that Israeli Prime Minister Benjamin Netanyahu accepted a cease-fire proposal for Gaza, with Hamas’s response pending. Despite recent market volatility and economic uncertainties, investor enthusiasm for stocks remains strong.
Corporate Highlights:
- Sonder Holdings Inc.(SOND) soared after securing capital and integrating with Marriott International Inc.’s system.
- Estée Lauder (EL) CEO Fabrizio Freda announced his retirement in June 2025 after a transformative but recently challenging tenure.
- General Motors Co. (GM) plans to cut over 1,000 software engineers to streamline its software and services operations.
- Circle K operator Alimentation Couche-Tard Inc. proposed a takeover of 7-Eleven owner Seven & i Holdings Co., potentially creating the world’s largest convenience store operator.
