{"id":23559,"date":"2025-08-05T15:02:14","date_gmt":"2025-08-05T15:02:14","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=23559"},"modified":"2025-08-05T15:02:14","modified_gmt":"2025-08-05T15:02:14","slug":"sp-500-jumps-on-speculation-of-fed-easing","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/pl-eu\/analysis\/sp-500-jumps-on-speculation-of-fed-easing\/","title":{"rendered":"S&P 500 jumps on speculation of Fed easing"},"content":{"rendered":"\n
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Markets opened the week on a positive note as signs of a slowing US economy raised hopes for interest rate cuts. While softer job data might typically worry investors, it\u2019s now fuelling confidence that the Federal Reserve could ease policy \u2013 setting the tone for a cautious but optimistic August.<\/p>\n\n\n\n

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Wall Street rallies as traders bet on rate cut<\/strong><\/h2>\n\n\n\n

The S&P 500 surged by 1.5% on Monday<\/a>, driven by renewed buying interest across the market.<\/p>\n\n\n\n

The bullish momentum followed a weaker-than-expected US jobs report, which strengthened investor expectations that the Federal Reserve could begin cutting interest rates as early as next month.<\/p>\n\n\n\n

The benchmark index led the broader advance, with the Dow Jones Industrial Average climbing 585 points \u2013 a 1.3% gain \u2013 while the tech-focused Nasdaq Composite jumped 2%.<\/p>\n\n\n\n

Notably, small-cap stocks also joined the rally, pointing to wider market participation beyond just mega-cap tech names.<\/p>\n\n\n\n

This broad-based move suggests that investors quickly brushed off the initial concerns sparked by Friday\u2019s disappointing employment data.<\/p>\n\n\n\n

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Cooling job market reshapes Fed outlook<\/strong><\/h2>\n\n\n\n

Investor sentiment shifted significantly following the latest Non-Farm Payrolls report released last Friday.<\/p>\n\n\n\n

The US economy added just 73,000 jobs in July \u2013 well below expectations \u2013 and revisions for May and June showed substantially lower figures than previously reported.<\/p>\n\n\n\n

In response, market participants have drastically recalibrated their expectations for monetary policy.<\/p>\n\n\n\n

According to futures markets, there is now a 92.1% chance the Federal Reserve will cut interest rates in September \u2013 up sharply from the 38% probability priced in before the jobs report was released.<\/p>\n\n\n\n

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Fed Fund Futures

– Market now fully pricing in a rate cut in Sept (96% chance) pic.twitter.com\/EBDdO2P51F<\/a><\/p>— Christian Fromhertz \ud83c\uddfa\ud83c\uddf8 (@cfromhertz) August 4, 2025<\/a><\/blockquote>