Stocks in the US closed higher on Wednesday, extending their recent momentum as growing expectations for a Federal Reserve rate cut in September continued to lift sentiment.
The S&P 500 gained 0.3% and the Nasdaq added 0.1%, with both indexes briefly hitting record highs, while the Dow Jones advanced 463 points. The rally built on Tuesday’s surge, sparked by a softer-than-expected inflation reading that reinforced bets on monetary easing, with traders fully pricing in a September cut and some anticipating a 50 basis-point move.
Sector gains were led by materials, healthcare, and consumer cyclicals. Standout performances included AMD’s 5.4% jump and Paramount Skydance’s 36.7% surge, while some mega-cap tech stocks such as Nvidia, Alphabet, and Microsoft slipped. In earnings, Brinker International rose 1.5% after topping profit expectations, whereas Cava tumbled 16.6% after cutting its full-year sales outlook.
Source: Trading Economics