U.S. equity markets posted solid gains, led by the Nasdaq Composite reaching a record high. This rally was largely driven by Apple's announcement of a $100 billion investment in U.S. manufacturing. The market showed resilience despite ongoing trade tensions and recent tariff changes. Speculation about a potential Federal Reserve rate cut grew, with a strong likelihood indicated by recent official comments. Economic indicators revealed a slowing economy, as the ISM services PMI fell and jobless claims increased significantly. Bond markets reacted similarly, with Treasury yields rising but favorable conditions for municipal and corporate bonds.
U.S. equity markets rallied with the Nasdaq Composite achieving a record high, driven by Apple's $100 billion investment in manufacturing and a relatively subdued trade tension backdrop.
Market sentiment improved significantly with the announcement of Apple's investment, which led to a surge in its shares by over 13%, positively affecting broader index performance.
Comments from Federal Reserve officials hinted at a potential September rate cut, with a 90% probability priced in by markets, due to weakening labor market indicators.
Economic data showed signs of slowing momentum, with ISM services PMI dipping to 50.1 and jobless claims reaching their highest point since late 2021.
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