Market Highlights

Companies are moving some of the excess cash on their books into longer-term securities, betting that rate cuts from the Federal Reserve will make these holdings more lucrative. Firms this year have cut allocations to cash and other liquid investments, such as money market funds, to just 27% of holdings through the end of August, on average down about 13 percentage points compared with the end of 2022 after the Fed started hiking rates, according to investment software firmClearwater Analytics. At the same time, corporate allocations to US Treasury debt maturing in more than 90 days are higher than at any point since 2018. Companies also boosted the share of corporate bond holdings in their portfolios to a three-year high, according to the Clearwater data, which covers $1.6 trillion in holdings from around 800 firms,most of them US-based.

Stocks hit all-time highs on hopes the Federal Reserve will cut interest rates to curb a jobs downturn, with traders gearing up for inflation data that will test the market’s conviction. While most shares in the S&P 500 fell, the gauge rose amid gains in all big techs but Apple Inc. - which sank 1.5% after introducing its iPhone 17, including an already expected skinnier model. In late hours, Oracle Corp. surged after posting a huge jump in bookings. A slide in bonds halted a four- day rally. Oil climbed after an Israeli attack in Qatar revived fears of an escalation of the conflict in the Middle East. US stocks are set to notch fresh highs as traders bet that a pair of inflation reports won’t derail expectations for the Federal Reserve to resume cutting interest rates.

Wall Street traders betting the Federal Reserve will cut rates drove stocks close to all-time highs amid hopes that policy easing at a time when the economy is bending, but not breaking will power Corporate America. Following a slide in the aftermath of weak jobs figures, the S&P 500 bounced back. While upcoming data is projected to show that progress on reducing inflation has stalled, traders braced for almost three Fed cuts this year starting in September. Treasuries kept rising, with the two-year yield remaining at the lowest level since 2022. The dollar retreated. Global stocks climbed for a fifth day on Tuesday, as optimism around US interest-rate cuts spread to Asia and fueled a buying spree in technology shares.

Strong evidence the US labor market is slowing rippled through Wall Street, driving stocks lower and bonds higher on concern the Federal Reserve will now have to rush to prevent further weakness. The sharp cooling triggered fears about a more pronounced jobs slowdown, sparking a flight to Treasuries, with two-year yields hitting the lowest level since 2022. The data also prompted a fast repricing in money markets, which ended up projecting almost three Fed cuts this year. The yen fell and Japanese stocks advanced after Prime Minister Shigeru Ishiba said on the weekend that he intends to step down.

Wall Street traders gearing up for Friday’s jobs report got a trio of data that reinforced the view of a cooling labor market, keeping bets on Federal Reserve rate cuts alive while driving stocks and bonds higher. The latest readings on hiring and unemployment claims came on the eve of data that’s expected to extend the weakest stretch of US job growth since the pandemic. Treasury two-year yields fell to the lowest in about a year. Money markets almost fully priced in a Fed reduction this month and see at least two by year-end. The S&P 500 hit a record high. In late hours, Broadcom Inc.’s upbeat forecast failed to impress some investors.

Wall Street traders kept piling into bets the Federal Reserve will cut rates in September as weak labor data lifted bonds. Those wagers also propped up stocks, which halted a two-day rout amid a rally in big tech. Just 48 hours ahead of the all-important US payrolls report, a drop in job openings to the lowest in 10 months saw traders almost fully pricing in a Fed cut this month and projecting at least two reductions in 2025. Treasuries bounced after a slide that put the 30-year yield close to 5%. The dollar fell. While most S&P 500 shares actually slipped, Alphabet Inc. hit a record high as Google dodged a sale of Chrome. Apple Inc. plans to launch an AI-powered web search tool for Siri. In late hours, Salesforce Inc. forecast lackluster sales growth

Wall Street kicked off September on a sour note, with stocks joining a slide in bonds amid heavy corporate-debt sales and developed-world budget worries. The dollar rose. Gold hit a record high. US 30-year yields approached 5%, pressuring tech shares whose valuations have widened during a surge from April lows. While the S&P 500 trimmed its losses, almost 400 of its shares fell. All megacaps slipped, with Nvidia Corp. seeing its longest slump since March. In late hours, Alphabet Inc. jumped as a federal judge ruled Google doesn’t have to sell its Chrome web browser. Stocks chalked up a modest rebound as traders tracked the rout in long-dated bonds, fueled by anxiety over inflation and mounting government borrowing. European stocks rose 0.3% after suffering their steepest loss in a month in the previous session. Nasdaq 100 futures gained 0.3% as Alphabet Inc. rallied in extended trading on Tuesday, buoyed by a ruling that Google won’t be forced to sell its Chrome browser. Contracts on the S&P 500 advanced 0.2%.

US stock futures staged a small rebound from a technology-led selloff, setting a steadier tone as a testing month begins with markets near record highs. S&P 500 and Nasdaq 100 contracts advanced 0.2%, with cash trading in US stocks and Treasuries closed for the Labor Day holiday. The dollar was little changed. Europe’s Stoxx 600 rose 0.2%. BAE Systems Plc and Rheinmetall AG led advances in defense shares after the Financial Times reported that Europe is working on detailed plans for potential post- conflict deployments in Ukraine. Asian equities were mixed, with a 19% surge in Alibaba Group Holding Ltd. contrasting with a slump in chipmaking shares.

Wall Street traders drove stocks lower amid a selloff in tech shares that have powered the surge from April’s meltdown. The slide came despite inflation data that did little to alter bets on Federal Reserve rate cuts, with short-dated Treasuries outperforming. A rout in the S&P 500’s most-influential group drove the index down from a record at the end of a solid August. The Nasdaq 100 fell 1.2%. The market is bracing for what is known as the weakest month for US shares, as institutional investors rebalance, retail traders slow their buying and volatility picks up. Asian equities were under pressure after a tech selloff hit Wall Street, with chip shares among the biggest losers. Hong Kong was an outlier as Alibaba Group Holding Ltd. surged.

A solid economic reading drove stocks to fresh all-time highs, but Wall Street traders refrained from making big moves before inflation data that could bring more clues on the pace of Federal Reserve rate cuts. Short-dated Treasury yields rose. The dollar fell. Just 24 hours ahead of the release of the Fed’s favored price gauge, data showed the US economy expanded faster than initially estimated, underscoring the resilience of America’s primary growth engine — consumer Spending Stocks drifted lower as traders held back from bold wagers ahead of Friday’s US inflation data that may test current bets on how quickly the Federal Reserve can adjust interest rates lower.