Driving the turnaround are this week's reports on retail sales, inflation and producer prices, which helped allay worries over an economic slowdown sparked by weaker-than-expected employment data at the start of the month.
Since then, what we've seen is the economic data has actually come out in a much more positive light. There was a real growth scare that had emerged.
The probability of a 25 basis point cut stood at 75%, in line with expectations that the Fed will kick off their meeting this month.
Traders are unwinding bets that the Federal Reserve will need to deliver jumbo-sized rate cuts in September to stave off a recession.
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