Stocks Edge Higher on Hopes of More Fed Rate Cuts

Market Overview - The S&P 500 Index is up +0.11%, the Dow Jones Industrials Index is up +0.08%, and the Nasdaq 100 Index is up +0.23% [1] - The Nasdaq 100 has reached a new all-time high, driven by positive sentiment regarding potential Fed interest rate cuts [2] - Market volatility is heightened due to the expiration of $5 trillion in stock options, futures, and derivatives [2] Interest Rates and Economic Indicators - Minneapolis Fed President Neel Kashkari supports a recent 25 basis point rate cut and anticipates two additional cuts this year [3] - The market is pricing in a 92% chance of a 25 basis point rate cut at the next FOMC meeting on October 28-29 [4] - The 10-year T-note yield has risen to 4.143%, reflecting pressure from stock market strength and a decline in safe-haven demand [6] Corporate Earnings and Stock Performance - Over 22% of S&P 500 companies have provided guidance for Q3 earnings that are expected to exceed analysts' expectations, the highest in a year [4] - S&P companies are projected to achieve 6.9% earnings growth in Q3, an increase from 6.7% at the end of May [4] - Tesla is up more than +2%, Apple is up more than +1%, and other major tech stocks are also showing gains, supporting overall market performance [12] International Markets - The Euro Stoxx 50 has risen to a 4-week high, up +0.23%, while China's Shanghai Composite closed down -0.30% [5] - Japan's Nikkei Stock 225 fell -0.57% after reaching a new record high [5] Company-Specific News - Klaviyo Inc is up more than +3% following an upgrade from Morgan Stanley to overweight with a price target of $50 [13] - FedEx reported Q1 adjusted EPS of $3.83, surpassing the consensus estimate of $3.59, leading to a gain of more than +2% in its stock [13] - Scholastic Corp is down more than -10% after reporting a Q1 adjusted loss per share of -$2.52, which was wider than the consensus estimate [14]