Stocks jumped as traders have priced a 100% probability of a Fed rate cut in July, according to the CME Group’s FedWatch tool. A stronger-than-expected June jobs report tempered expectations for a more aggressive easing.
The S&P 500 was up 0.5% after rising 0.7% to break above 3,000 for the first time as the energy and tech sectors outperformed. The Nasdaq also hit an all-time high, rising 1% before slipping back to trade 0.7% higher. The Dow was up 85 points, also off session highs, led by Chevron and American Express.
Amazon shares rose 1.2% and broke above $2,000 per share. FedEx shares climbed more than 1% after Goldman Sachs added them to their conviction buy list.
In prepared testimony to the House Financial Services Committee, Powell said business investments across the U.S. have slowed “notably” recently as uncertainties over the economic outlook linger.