The Dow Industrials broke its six-week losing streak, gaining 4.71%. The S&P gained 4.41% and the Nasdaq 3.88% despite Monday’s 1.61% hit on tech antitrust threats.
Friday’s nonfarm payrolls was over 100,000 short of expectations, confirming signs of a slowdown in the jobs market. This increased expectation of a Fed rate cut as early as the July 30-31 meeting (fed funds futures predict 85% likelihood), sending the 10-year Treasury yield close to 2%.
The impacts of the trade war are lowering economic growth to 1% or so. FOMC Chairman indicated that the central bank is prepared to react to signs of economic weakness.
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