(Bloomberg) — Wall Street traders sent stocks higher as bonds yields fell after a string of weaker-than-estimated economic reports reinforced the case for the Federal Reserve to start cutting rates this year.
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In a shortened session ahead of the US holiday, the S&P 500 hit an all-time high on bets lower rates will keep fueling Corporate America. Treasuries climbed across the curve. The dollar remained lower after minutes from the latest Fed policy gathering showed officials said they were awaiting evidence that inflation is cooling and were divided on how long to keep rates elevated.
To Paul Ashworth at Capital Economics, the Fed minutes “feel dated” given subsequent signs of an economic slowdown. Michael Feroli at JPMorgan Chase & Co. said the minutes “lean dovish.” There was broad agreement that disinflationary pressures are prevalent, that the labor market is getting less tight, and that economic…
