Stock Market Update

[BRIEFING.COM] The Nasdaq Composite (+0.4%) established a new record-high level, a feat accomplished by its peers the S&P 500 (+0.5%) and DJIA (+1.0%) just after the open. 

Unlike yesterday's action, which largely centered around certain AI catalysts, the broader market is moving upward so far today. Advancers outpace decliners by a roughly 4-to-1 margin on the NYSE and a roughly 3-to-1 clip on the Nasdaq after razor-thin breadth figures yesterday.

Smaller-cap indices such as the Russell 2000 (+0.9%) and the S&P Mid Cap 400 (+0.9%) are also benefitting from the prospect of friendlier future interest rate environments after a flat performance in yesterday's trade. 

According to the CME FedWatch tool, there is a 100% probability of at least a 25 basis point cut to 4.00-4.25% at the September FOMC meeting versus 100% yesterday, an 89.0% probability of at least a 25 basis point cut to 3.75-4.00% at the October FOMC meeting versus 80.9% yesterday, and an 83.6% probability of at least a 25 basis point cut to 3.50-3.75% at the December FOMC meeting versus 74.5% yesterday.