US Stocks Extend Upside On Rate-Cut Hopes

US stocks moved back to the upside during trading on Friday with the Dow and the S&P 500 reaching new record intraday highs. The Dow advanced 247.15 points or 0.6 percent to 40,000.90, the Nasdaq climbed 115.04 points or 0.6 percent to 18,398.45 and the S&P 500 rose 30.81 points or 0.6 percent to 5,615.35. For the week, the Dow shot up by 1.6 percent, the S&P 500 jumped by 0.9 percent and the Nasdaq increased by 0.3 percent.

The rebound on Wall Street came as traders looked to pick up stocks at somewhat reduced levels following the steep drop seen on Thursday, which partly reflected a rotation out of leading tech stocks like Nvidia (NVDA). Shares of Nvidia jumped by 1.5 percent on the day after the AI darling plunged by 5.6 percent in the previous session. Traders also remained optimistic about the outlook for interest rates even though the Labor Department released a report showing producer prices in the U.S. increased by slightly more than expected in the month of June.

Meanwhile, US dollar rebounded due to intensified risk aversion following the attempted assassination of former US President Donald Trump on Saturday. The dollar index is recovering after a steep fall to 103.73, a five-week low. Meanwhile, US 10-year Treasury note fell below the 4.2% mark, hovering at its lowest in four months as a batch of economic data solidified markets expectation of imminent rate cuts by the Federal Reserve.

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