The Financial News Agency reported on May 7th that the market continued to show optimism as traders raised expectations for the Federal Reserve to cut interest rates. The three major indexes closed higher, with the Nasdaq rising more than 1%.
The Dow Jones Index rose 0.46% to 38,852.27 points, the S&P 500 Index rose 1.03% to 5,180.74 points, and the Nasdaq Index rose 1.19% to 16,349.25 points. The U.S. non-farm payrolls data for April was weaker than expected, easing concerns about an overheating economy and giving the Federal Reserve more reason to cut interest rates.
Federal Reserve Chairman Powell’s recent dovish statement also contributed to investor relief. The CME Group’s Fed Rate Watch tool shows a 90% chance of a rate cut before the end of the year.
In company news, Microsoft is reportedly preparing to launch a new artificial intelligence language model to compete with Google and OpenAI. Tesla has initiated a new round of layoffs, while Intel forms a Japanese chip manufacturing automation team. Boeing faces an investigation by the U.S. FAA for potential record falsification, and EHang’s intelligent aircraft completes its first manned flight in the UAE.
Meanwhile, Lucid’s first-quarter loss per share was higher than expected, while Palantir’s revenue surpassed expectations and raised its full-year revenue guidance.
Overall, the market’s optimism continues as traders anticipate potential interest rate cuts and monitor developments in key industries. (Source: Financial Associated Press)