The S&P 500 Index ($SPX) (SPY) today is up +0.35%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.08%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.79%. September E-mini S&P futures (ESU25) are up +0.35%, and September E-mini Nasdaq futures (NQU25) are up +0.76%.
Stocks are climbing today on the prospect of a more accommodative Federal Reserve. The 10-year T-note yield fell to a 5-month low today of 4.04%. The markets have fully priced in a 25 bp rate cut by the Fed at next week's FOMC meeting and priced in a 10% chance for a 50 bp rate cut. However, this week's US Aug CPI and PPI reports will show how much room the Fed has to cut interest rates and support the job market. Stocks fell last Friday after the weaker-than-expected US Aug payroll report sparked concerns that the Fed was falling behind in supporting a rapidly cooling US labor market.
