S&P 500 tops 3,000 points as US treasuries are mixed on rate bets

The S&P 500 surged above 3,000 points for the first time, and US treasuries rose along with gold after US Federal Reserve chair Jerome Powell signaled an openness to rate cuts amid ongoing uncertainty in the economy, cementing market bets for easing at July’s Federal Reserve meeting.

The Dow Jones industrial average joined the S&P 500 at a record high after Powell said, in prepared remarks, that downside risks to the economy remain, even after Friday’s strong jobs report forced investors to recalibrate rate-cut expectations. The yield on 10-year treasuries fell to 2.05% after climbing above 2.10% for the first time in a month. The dollar weakened. Oil rose above $59 a barrel in New York.

“A rate cut in July is now all but certain,” said James McCann, senior global economist at Aberdeen Standard Investments. “The strength of last week’s jobs number did lead some to think that the Fed may pause for thought. It’s clear from this that they won’t.”