U.S. Equities
Global stocks rallied amid easing global trade tensions, healthy corporate earnings and the start of a new interest rate cutting cycle by the U.S. Federal Reserve. Helping to calm fears of a trade war, the U.S. announced new trade deals with some of its biggest trading partners, including the European Union and Japan.
Information technology stocks rose as investors continued to favor companies driving the rapid growth of artificial intelligence (AI). Shares of AI-related firms, such as chipmaker NVIDIA and software provider Microsoft, helped drive key market indexes to new record highs. Consumer staples stocks declined and the health care sector lagged.
Bonds generally posted solid gains as investors anticipated an interest rate cut at the Fed’s September policy meeting. The Fed delivered a 25 basis point reduction and indicated the possibility of further cuts in the months ahead amid signs of weakness in the U.S. labor market. It was the first time the Fed moved to lower rates since December 2024.
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