Stocks Rally for the Week on Fed Rate-Cut Optimism: Markets Wrap

  • Fed’s preferred gauge of inflation rose mildly in August
  • Nvidia shares dragged US stock indexes lower on Friday
BofA's Cabana Expects Fed to Cut Rates by Another 75 bps This Year
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US stocks gained for a third consecutive week — despite languishing on Friday — as investors were repeatedly reassured that the economy is cooling without falling off a cliff.

Treasuries rallied as data cemented bets of further interest-rate cuts by the Federal Reserve. Yields are lower across the curve, with the 10-year rate hovering around 3.75%. The Bloomberg Dollar Spot Index declinedBloomberg Terminal for a fourth week.