Wall Street records; S&P 500 earnings seen up 30%+ as Fed hike odds fade
US equities hit new records as investors price only ~20% odds of a Fed rate hike in October, while consensus expects S&P 500 earnings to surge over 30% ahead of the season. The combination of easing monetary policy expectations and strong earnings growth supports risk appetite, though the 30% earnings jump figure appears aggressive and unverified.
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US Equities: S&P 500 and Nasdaq Reach Record Highs Driven by AI and Tech
The S&P 500 and Nasdaq have reached new record highs, with the S&P 500 surpassing 7,800 for the first time. This rally is primarily driven by investor optimism in AI chipmakers and broader tech, supported by easing bond yields and expectations of strong corporate earnings. The sustainability of this rally is uncertain given persistent macro headwinds including elevated oil prices, high interest rates, and a bond market slump.