Wall Street’s summer run: Rate cut hopes fuel fresh highs
Thursday’s closing bell marked another record for Wall Street. One that traders, analysts, and tech giants could not ignore. Major indices soared to fresh peaks, fueled by renewed hope that the Federal Reserve’s next act may be a rate cut, not another pause. The S&P 500’s smooth climb and the Nasdaq’s tech-powered surge hint at optimism that can reshape the rest of the year. But in this market, every star performer becomes the centre of attention, and every signal from the Fed moves billions in seconds.
From New York to Miami, a single word from a policymaker pivots the mood from caution to celebration. For months, the talk has circled around, “Will the Fed cut?” This week, that question edged closer to an answer—with seasoned experts weighing in, and stocks responding like sprinters at the starting gun.
Tech stocks shine as traders watch the Fed
Earnings growth: Palantir vs Gorilla Q2 2025
Tech remains in the limelight, with names like Palantir and Gorilla Technology Group shaking up earnings expectations. Palantir wowed with a 31.57% jump in profit, while Gorilla delivered a 129.58% surge, riding the wave of enterprise contracts and AI-fuelled demand. Meta and Microsoft are also winning, showing that the so-called “AI trade” is far from over.
But it isn’t just the numbers behind the rally. The hope? That a rate cut will come soon, cooling borrowing costs and reigniting growth. “We anticipate effects to come over time, with significant uncertainty regarding timing and magnitude,” Federal Reserve Chair Jerome Powell said at Jackson Hole last week, hinting that the Fed’s next move could tip the scales.
On Thursday, Fed Governor Christopher Waller put it plainly: “Given the information available to me today, I would back a 25 basis point reduction,” adding that acting early was vital to avoid a jobs market stumble. Wall Street’s reaction was instant. The S&P 500 finished up 0.32%, the Nasdaq 0.53% higher, and the Dow rose 0.16%.
Rate cut fever and the power of a single speech
US PCE Inflation Rates: Jan-Aug 2025
As the Federal Reserve takes centre stage, market sentiment dances with every new statistic or forecast. US PCE inflation, which sits at 2.8%, has traders eyeing the September meeting. “Labour markets are in transition, and that makes policy especially tricky,” said analyst Michael Hewson, noting that recent price surges could make the Fed more cautious even as politicians lean on the central bank for cuts.
Experts agree the risks of a misstep loom large now. UBS economists noted, “He may provide some gentle indications that rates could decrease at a future meeting. However, this is his final address at Jackson Hole, and he may never again have such a prominent platform to convey his perspective on how his legacy should be perceived”.
And yet, for all the uncertainty, one thing is clear: Wall Street thrives on anticipation. Rate cut fever gives leaders and laggards a stage and keeps every investor glued to their screens. As the narrative unfolds, only one certainty remains—for traders and businesses alike, today’s market isn’t just about the numbers but about who calls the next move.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
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Wall Street’s summer run: Rate cut hopes fuel fresh highs
Thursday’s closing bell marked another record for Wall Street. One that traders, analysts, and tech giants could not ignore. Major indices soared to fresh peaks, fueled by renewed hope that the Federal Reserve’s next act may be a rate cut, not another pause. The S&P 500’s smooth climb and the Nasdaq’s tech-powered surge hint at optimism that can reshape the rest of the year. But in this market, every star performer becomes the centre of attention, and every signal from the Fed moves billions in seconds.
From New York to Miami, a single word from a policymaker pivots the mood from caution to celebration. For months, the talk has circled around, “Will the Fed cut?” This week, that question edged closer to an answer—with seasoned experts weighing in, and stocks responding like sprinters at the starting gun.
Tech stocks shine as traders watch the Fed
Earnings growth: Palantir vs Gorilla Q2 2025
Tech remains in the limelight, with names like Palantir and Gorilla Technology Group shaking up earnings expectations. Palantir wowed with a 31.57% jump in profit, while Gorilla delivered a 129.58% surge, riding the wave of enterprise contracts and AI-fuelled demand. Meta and Microsoft are also winning, showing that the so-called “AI trade” is far from over.
But it isn’t just the numbers behind the rally. The hope? That a rate cut will come soon, cooling borrowing costs and reigniting growth. “We anticipate effects to come over time, with significant uncertainty regarding timing and magnitude,” Federal Reserve Chair Jerome Powell said at Jackson Hole last week, hinting that the Fed’s next move could tip the scales.
On Thursday, Fed Governor Christopher Waller put it plainly: “Given the information available to me today, I would back a 25 basis point reduction,” adding that acting early was vital to avoid a jobs market stumble. Wall Street’s reaction was instant. The S&P 500 finished up 0.32%, the Nasdaq 0.53% higher, and the Dow rose 0.16%.
Rate cut fever and the power of a single speech
US PCE Inflation Rates: Jan-Aug 2025
As the Federal Reserve takes centre stage, market sentiment dances with every new statistic or forecast. US PCE inflation, which sits at 2.8%, has traders eyeing the September meeting. “Labour markets are in transition, and that makes policy especially tricky,” said analyst Michael Hewson, noting that recent price surges could make the Fed more cautious even as politicians lean on the central bank for cuts.
Experts agree the risks of a misstep loom large now. UBS economists noted, “He may provide some gentle indications that rates could decrease at a future meeting. However, this is his final address at Jackson Hole, and he may never again have such a prominent platform to convey his perspective on how his legacy should be perceived”.
And yet, for all the uncertainty, one thing is clear: Wall Street thrives on anticipation. Rate cut fever gives leaders and laggards a stage and keeps every investor glued to their screens. As the narrative unfolds, only one certainty remains—for traders and businesses alike, today’s market isn’t just about the numbers but about who calls the next move.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
Get paid globally. Keep more of it.
No FX markups. No GST. Funds in 1 day.
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