U.S. stocks experienced gains on Thursday, with the S&P 500 rising 0.38%, the Nasdaq increasing by 0.24%, and the Dow Jones up by 0.24%. This upward movement was driven by expectations of a potential Federal Reserve interest rate cut, fueled by recent soft inflation data and cooling labor market indicators. The likelihood of a rate cut by September is now estimated at 60% .
Additionally, Oracle’s strong earnings outlook, which included a raised annual revenue growth forecast due to robust demand for AI-related services, contributed to renewed optimism in the technology sector. This optimism extended to major tech firms like Microsoft, Nvidia, and Broadcom, each gaining over 1% .
Despite these positive developments, global markets remain cautious due to escalating geopolitical tensions following Israel’s recent airstrikes on Iran. This situation has led to a flight to safety, with investors turning to assets like gold and government bonds, causing Treasury yields to dip .
In summary, while U.S. stocks are benefiting from expectations of a rate cut and positive corporate earnings, global geopolitical uncertainties continue to pose risks to market stability.
