Overview

• U.S. equity benchmarks extended a global rally with the S&P 500 rising 0.3% and the Nasdaq Composite adding 0.1% to new peaks.
• Treasury yields eased notably as the 10-year yield fell to 4.24%, reflecting growing conviction that the Federal Reserve will ease in September.
• Rate-sensitive sectors led gains, with homebuilders such as Lennar and PulteGroup jumping over 5% and Brinker International rallying on strong quarterly results.
• Shares of AI infrastructure firm CoreWeave plunged more than 20% despite revenue surging to $1.2 billion, as analysts warned of high debt and rising interest expenses.
• This week’s producer price index report is the next key inflation gauge that could confirm or temper expectations for Fed rate cuts.