Stocks Rally on Fed Rate Cut Hints; Energy Outperforms While Beauty Struggles
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The Fed hints at interest rate cuts later this year, providing some relief to the struggling stock market. The Dow rose 63 points, the S&P 500 popped 0.37%, and the Nasdaq rose 0.5%.
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Oil and energy stocks performed well, with NRG Energy up 5.6%, Marathon Petroleum up 3%, and Valero Energy up 2.8%.
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Beauty stocks struggled, with Ulta Beauty falling over 15% and Estée Lauder falling 4.3%. Competition and sales pressures were cited.
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AI and chip stocks bounced back after recent drops, with Nvidia up 0.4%, Micron rising 3.8%, Western Digital up 3.9%, and Super Micro Computer rising 2.5%.
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Fed Chair Jerome Powell expressed a desire for lower inflation and stated rates would be cut if appropriate, but said elections won't sway decisions. Rate cut decisions are eyed for July and September meetings.