Overview

• Futures markets assign roughly 97%–98% odds of a 25-basis-point rate cut in September after July’s CPI undershot forecasts and payroll gains slowed
• Treasury yields slid to multi-week lows, reducing borrowing costs and underpinning gains in U.S. equity benchmarks
• The S&P 500 and Nasdaq Composite closed at all-time highs while Dow futures also climbed in early trading
• Equity markets in Asia and Europe mirrored U.S. gains as relief over U.S.-China trade clarity and broader risk-on sentiment lifted stocks globally
• Underneath the broad rally, Gildan Activewear unveiled a $2.2 billion takeover of HanesBrands and Cava plunged 24% in after-hours trading following a same-store sales miss