Tech drags, banks shine as bets shift to supersized rate cut
Dow, S&P 500 end green; Nasdaq closes lower
Dow scores fresh record highs
Financials lead S&P 500 sector gainers; Tech weakest group
Dollar down; bitcoin off ~3%; gold edges up; crude up >2.5%
U.S. 10-Year Treasury yield dips to ~3.62%
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TECH DRAGS, BANKS SHINE AS BETS SHIFT TO SUPERSIZED RATE CUT
Wall Street stocks ended Monday's session in much the way they began it, with tech dragging on the Nasdaq, value boosting the Dow, and the S&P 500 showing a modest gain.
It would appear that until Wednesday at 2:00 pm Eastern, markets are laser-focused on rates.
The odds are in flux regarding the size of the Fed's expected rate cut - which would be the central bank's first reduction to the Fed funds target rate in 4-1/2 years.
In a turnaround from a week ago, financial markets now favor a 63% likelihood of a 50 basis point cut, more than double the probability as it stood a week ago, according to CME's FedWatch tool.
On a sector level, tech .SPLRCT in general - and chips .SOX in particular - were among the day's underperformers, while banks .SPXBK led the gainers.
Among the "magnificent seven" group of megacap stocks, only Meta Platforms META.O, Alphabet GOOGL.O and Microsoft MSFT.O ended the session in the green.
Powell & Co are due to convene tomorrow for their closely watched policy palaver, the conclusion of which will be marked by the afore-mentioned rate decision, and accompanying statement, and the summary economic projections, including the all-important dot-plot, which charts the central bank's path forward regarding rate normalization.
But tomorrow also brings with it a dog's breakfast of economic data, including retail sales, industrial production and homebuilder sentiment.
Here's your closing snapshot:
(Stephen Culp)
*****
FOR MONDAY'S EARLIER LIVE MARKETS POSTS:
AMID DISMAL DEFICITS, GOLD GLITTERS - CLICK HERE
TREASURIES NOTIONAL TRADING VOLUME HIT RECORD IN AUGUST - CLICK HERE
THE ARGUMENTS AGAINST A 50 BPS CUT - CLICK HERE
U.S. ETF ASSETS NOTCH RECORD INFLOWS IN AUGUST - ETFGI - CLICK HERE
EMPIRE STRIKES BACK: NY MANUFACTURING SPRINGS TO LIFE - CLICK HERE
TECH DRAGS ITS FEET AT THE TOP OF FED WEEK - CLICK HERE
NASDAQ COMPOSITE: ONCE AGAIN, IT'S MAKE-OR-BREAK FOR BREADTH - CLICK HERE
FROM NOW UNTIL YEAR-END: WHAT COULD GO WELL - CLICK HERE
BUYBACKS FROM EUROPEAN ENERGY NAMES TO SLOW IN 2025 - UBS - CLICK HERE
WHAT HAPPENS WHEN THE FED EASING STARTS? - CLICK HERE
TEPID START FOR STOXX AS MINERS WEIGH - CLICK HERE
WEAK START FOR EUROPE AHEAD OF PACKED WEEK - CLICK HERE
HANGING ON THE FED - CLICK HERE
Closing snapshot https://reut.rs/3ZsKDFz
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