Schwab Market Update
US stocks climbed, with the S&P 500 teasing a new record high and the Nasdaq nearing its own all-time high. Trade and earnings dominated the conversation with investors hoping for new signs of progress in negotiations ahead of an August 1 deadline for new tariffs. Reports suggest that a deal with Japan may be close and that President Trump is considering similar terms in talks with the EU. Meanwhile, the yield curve flattened with 2yrs up
Stocks surge as Powell signals dovish shift
The Dow and S&P hit fresh record highs after Fed Chair Jerome Powell signaled a dovish shift in policy at his Jackson Hole speech, opening the door for an interest-rate cut in September. Investors were cheered that Powell emphasized the Fed’s “data-dependent” approach and cited recent soft labor-market data. Meanwhile, bond yields dipped and the dollar fell. The softer yields helped to lift rate-sensitive sectors like small-caps and consumer-oriented ones.
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