U.S. equities climbed as AI enthusiasm and strong corporate guidance lifted mega-cap technology and semiconductor stocks, with Nvidia and Alphabet leading the way. Retail sales beat expectations and jobless claims fell, easing stagflation concerns. Treasuries sold off and the yield curve steepened as stronger data tempered aggressive Federal Reserve (Fed) rate cut bets.
Quick Hits
- Beyond the headlines: Powell signals careful shift toward neutral as labor market softens.
- Report releases: The FOMC lowered the range for the federal funds rate 25 basis points (bps).
- Financial market data: AI optimism and upbeat guidance lifted mega-cap tech. Weak housing data weighed on builders.
- Looking ahead: The focus this week turns to business activity and housing metrics.
