Core Viewpoint - The article discusses the recent performance of the U.S. stock market, focusing on the anticipation of a potential interest rate cut by the Federal Reserve in September, which has led to a rise in stock prices and investor confidence [3][4]. Market Performance - On Wednesday, U.S. stocks closed higher across the board, with the Dow Jones Industrial Average rising by 463.66 points (1.04%) to 44,922.27 points, the Nasdaq increasing by 0.14% to 21,713.14 points, and the S&P 500 gaining 0.32% to 6,466.58 points [3]. - The S&P 500 and Nasdaq reached their 17th and 20th record closing highs of the year, respectively, while the Dow is close to a new high [3]. - The Russell 2000 index, which tracks small-cap stocks sensitive to interest rates, rose nearly 2%, marking a six-month high [3]. Technology Stocks - Major tech stocks showed mixed results, with Apple rising by 1.6% due to plans for expansion into AI robots, home security, and smart displays. Amazon increased by 1.4%, while Tesla, Google, Nvidia, Meta, and Microsoft experienced slight declines [3]. Interest Rate Outlook - U.S. Treasury Secretary Yellen called for a reduction in interest rates, suggesting they might need to be lowered by 150 to 175 basis points, with a significant possibility of a 50 basis point cut in September [4]. - According to the Chicago Mercantile Exchange's FedWatch Tool, traders have fully priced in a 95.8% probability of a 25 basis point cut in September, with a 4.2% chance for a 50 basis point cut [4]. Bond Market and Economic Data - U.S. Treasury yields fell, with the 10-year yield decreasing by 5.7 basis points to 4.24% and the 2-year yield down by 5 basis points to 3.68% [4]. - The Mortgage Bankers Association reported a decline in the 30-year fixed mortgage rate by 10 basis points to 6.67%, marking the largest drop since February [5]. Commodity Prices - U.S. crude oil inventories exceeded expectations, leading to a drop in oil prices, with WTI crude falling by 0.82% to $62.65 per barrel and Brent crude down by 0.74% to $65.63 per barrel [5]. - International gold prices saw a slight increase, with COMEX gold futures for August delivery rising by 0.29% to $3,358.70 per ounce [5].

Market Overview - The U.S. non-farm payrolls increased by 73,000 jobs last month, falling short of the expected increase of 104,000 jobs, with the unemployment rate rising by 0.1 percentage points to 4.2% [3] - The employment growth for the previous two months was significantly revised downwards, causing surprise among analysts [3] - Employment growth has been concentrated in previously understaffed sectors such as healthcare and social assistance, with a steady decline in the breadth of job creation in recent months [3] Stock Market Performance - Major U.S. stock indices fell sharply, with the Dow Jones down 542.40 points (1.23%) to 43,588.58, the Nasdaq down 2.24% to 20,650.13, and the S&P 500 down 1.60% to 6,238.01 [1] - Amazon's stock dropped by 8.3% due to lower-than-expected revenue guidance for the third quarter [5] - Other major tech stocks also performed poorly, with Apple down 2.5%, Nvidia down 2.3%, and Tesla and Microsoft down 1.8% [6] Bond Market - U.S. Treasury yields fell sharply, with the two-year yield dropping by 26.5 basis points to 3.7% and the ten-year yield down by 15.1 basis points to 4.22% [4] - The probability of a rate cut in September surged to over 80% according to the FedWatch tool [4] Consumer Sentiment - The University of Michigan's survey indicated that U.S. consumer confidence rose for the second consecutive month in July, although overall market sentiment remains negative [3] Commodity Market - Gold prices surged due to increased risk aversion, with October contracts surpassing $3,400, marking a 2.02% increase [8] - Oil prices were pressured by economic uncertainty and OPEC+ production increase expectations, with WTI crude down 2.79% to $67.33 per barrel and Brent crude down 2.83% to $69.67 per barrel [7]