Stock Market Update

The stock market is on track for a mixed opening, with the S&P 500 futures currently trading two points below fair value. 

The S&P 500 and DJIA both set record intraday levels on Friday, though neither index could sustain the early gains to capture record closing highs. 

Last week's action was largely driven by changing rate cut expectations, with Tuesday's release of the July CPI boosting the probability of a 25 basis-point rate cut at the September meeting to a near certainty, while Thursday's PPI report saw those expectations slightly challenged.

The current probability of a 25 basis point rate cut stands at 82.9%, according to the CME FedWatch tool, down from 85.4% on Friday.