Shares in Asia Rally, Dollar Lower Against Yen on Fed Rate Cut Bets
TOKYO, JAPAN, AUG 4 – S&P 500 earnings beat expectations by 9.1%, fueling investor optimism amid Federal Reserve rate cut bets despite economic headwinds and tariff tensions.
- On Monday, U.S. shares rallied on positive earnings and rising bets for a September rate cut, while Asian stocks advanced on dip buying and rate-cut expectations.
- Traders priced in a roughly 80% chance of a Fed rate cut after Friday’s weak jobs report, with odds for September rising to about 94% from 63% on July 28, 2025.
- U.S. shares rallied on Monday as Bloomberg Intelligence reported S&P 500 earnings grew 9.1%, triple the pre-season forecast, with Nvidia, Alphabet, Meta surging, and Palantir Technologies Inc. raised its revenue forecast.
- Despite the rally, Morgan Stanley, Deutsche Bank AG and Evercore ISI warned that the S&P 500 is due for a near-term drop amid lofty valuations and souring economic data.
- There are signs of weakness in parts of the U.S. economy, that plays to the view that maybe not in September, but certainly this year that the Fed's still on course to ease potentially twice, said Rodrigo Catril.
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Shares in Asia rally, dollar lower against yen on Fed rate cut bets
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·Denver, United States
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Total News Sources16
Leaning Left3Leaning Right1Center6Last UpdatedBias Distribution60% Center
Bias Distribution
- 60% of the sources are Center
60% Center
L 30%
C 60%
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