Stocks Rally as Investors Bet on End of Fed Rate Hikes; Apple, Starbucks Beat Earnings
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Stocks climbed as investors bet the Fed is close to wrapping up rate hikes and assessed earnings reports. The Nasdaq, S&P 500, and Dow all closed higher.
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Traders are pricing in an 85% chance of no more Fed hikes this year. But JPMorgan CEO Jamie Dimon said the Fed could still raise rates 75bps due to sticky inflation.
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Apple, Starbucks, and Shopify reported earnings. Apple and Starbucks beat estimates, while Shopify returned to profitability.
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Investors piled into risk-on trades as fears of another Fed rate hike fade. The Nasdaq soared over 1.2% while the 10-year Treasury yield fell.
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Stock futures pointed higher on hopes the Fed is done with hikes. Dow, S&P 500, and Nasdaq 100 futures all climbed.