Stocks hit record highs, Treasury Secretary Bessent calls for a 50 basis point cut in Sept

Market Trends & Rate Cut Expectations - US stock futures are rising, mirroring global equities trading at record highs, fueled by investor optimism for a rate cut at the Fed's September meeting following the July CPI report [1][4] - The market is pricing in a 99.9% chance of a Fed rate cut, with some debate on the street about the likelihood and magnitude of the cut [13][16][41] - Treasury Secretary Besson suggests the Fed should consider a 50 basis point rate cut at its next meeting, advocating for a policy rate at least 1.5% lower [1][2][11] - UBS anticipates rate cuts starting in September, totaling 100 basis points through January, based on expectations of gradual inflation and a stretched consumer [20][21] Company Performance & IPOs - Coreweave shares are declining due to a disappointing earnings outlook linked to the cost of rapid AI data center buildout, despite a nearly fourfold increase in share price since its March IPO [2] - Crypto firm Bullish raised $1.1 billion in an IPO and plans to debut on the New York Stock Exchange [3][33] - Cava's shares are plunging after missing expectations for same-store sales in Q2 and lowering its full-year sales growth forecast to 4%-6% from the previously expected 6%-8% range [26][27][28] - Tencent's revenue jumped 15% in its most recent quarter, driven by increased investment in AI to compete with rivals [36] - Brinker International, parent company of Chili's, reported better-than-expected revenue due to increased demand at Chili's, with same-store sales up 24% [39] AI & Technology - The AI trade continues to drive market momentum, but diversification is recommended to mitigate concentration risk among leading stocks like Nvidia and Microsoft [9][46][48][49] - Investors are closely monitoring Chinese tech firms' AI investments, particularly after Deepseek's LLM breakthrough [36][37] Economic Factors & Fed Policy - The CPI report contains elements that could appeal to both optimists and pessimists, with headline inflation meeting expectations but core inflation hitting a six-month high [7][8] - The White House is pushing back on reports of a wide search for a new Fed chair, emphasizing competence and experience [22][23][24][25]