Wall Street rises on renewed hopes of Fed rate cut

The Wall Street’s main stock indices rose this Mondayby reinforcing the expectations of interest rate cuts this year by the Federal Reserve, following last week’s weak nonfarm payrolls data.

The Dow Jones Industrial Average rose 146.36 points, or 0.4%, to 38,822.38; he S&P500 gained 26.70 points, or 0.5%, to 5,154.49 units; and the Nasdaq Composite added 85.00 points, or 0.53%, to 16,241.33 units.

The reference S&P500 and Dow Jones They closed on Friday three week highs after data showed US job growth slowed more than expected in April, taking pressure off the US central bank to keep rates higher for longer.

According to the LSEG interest rate probability application, the operators foresee cuts of 48 basis points by the Fed until the end of 2024, with the first reduction expected in September or November. In recent weeks, traders had forecast a single cut due to signs of stagnant inflation.

US stock indices appear to have stabilized after a choppy April, as a much better-than-expected first-quarter earnings season and hopes for an easing of U.S. monetary policy draw buyers back into the market.

Last week, the Federal Reserve left interest rates unchanged and indicated that it was leaning towards an eventual reduction in borrowing costsbut reiterated that he wants to have “greater confidence” that inflation will continue to fall before cutting rates.

Richmond Fed President Thomas Barkin and his New York counterpart, John Williams, are scheduled to speak later in the day, kicking off speeches by a host of U.S. policymakers this week.

Also this week the Weekly jobless claims and US consumer confidence in May.

With earnings season in full swing, investors too They will be paying attention this week to the quarterly figures of large companies such as Walt Disney, Uber and Arm Holdings.