S&P 500 and Nasdaq reach new highs, boosted by expectations of Fed rate cuts

On August 13th, driven by expectations of a September interest rate cut by the Federal Reserve, the S&P 500 index rose 1.1%, the Nasdaq 100 index also hit a historic high, and the Russell 2000 index rose 3%. The yield of two-year treasury bond fell 4 basis points to 3.73%, and the US dollar weakened. The inflation data is in line with expectations, and the market's bet on low interest rates is driving up the stock market. The AI boom and strong corporate profitability provide support.