The S&P 500 Index ($SPX) (SPY) today is up by +0.31%, the Dow Jones Industrials Index ($DOWI) (DIA) is up by +0.27%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up by +0.28%. September E-mini S&P futures (ESU25) are up +0.29%, and September E-mini Nasdaq futures (NQU25) are up +0.26%.
Stock indexes are moving higher today as bond yields decline on expectations that the Fed will start cutting interest rates as soon as this month. Today’s weak US labor market reports knocked bond yields lower and reinforced speculation that the Fed will cut rates as soon as the September 16-17 FOMC meeting after today’s Aug ADP employment change rose less than expected and weekly jobless claims rose to a 10-week high. The 10-year T-note yield fell to a 4-month low of 4.17%, and the swaps market shows the chances of a Fed rate cut this month rising to 95%.
