Wall Street rallies as a cut to interest rates next week looks more certain

Market Performance - Wall Street experienced a record-setting day with the S&P 500 rising 0.8%, marking an all-time high for the third consecutive day [1] - The Dow Jones Industrial Average increased by 617 points, or 1.4%, while the Nasdaq composite gained 0.7%, both reaching record levels [1] Economic Indicators - Treasury yields decreased following the release of mixed U.S. economic data, which may influence the Federal Reserve's decision on interest rates [2] - An increase in unemployment benefit applications suggests a potential rise in layoffs, indicating a slowdown in the job market [3] Federal Reserve Outlook - The Federal Reserve is expected to cut interest rates for the first time this year, as the labor market's weakness is seen as a more pressing issue than inflation [2][6] - Inflation rates for U.S. households rose by 2.9% in August compared to the previous year, slightly up from July's 2.7% [5] Sector Impact - Stocks of companies likely to benefit from lower interest rates, such as real estate and homebuilders, saw significant gains, with Builders FirstSource rising by 4.5% [7]