- Stocks joined gains in riskier parts of the market, while the dollar fell after a seemingly unstoppable rally that rattled global currencies and fueled fears of further headwinds for corporate America.
- The S&P 500 surpassed its 100-day average, breaking a three-week losing streak. The Nasdaq 100 performed better. Profitless tech firms, meme stocks, and bitcoin all rose in value. The dollar pushed away from a record, defying sceptics who labelled the drop a correction, despite calls for a stronger currency amid tighter federal reserve policy.
- After a rout that drove equities to nearly oversold levels, traders defied hawkish Fed remarks and recession fears.
- Following two 75-basis-point increases, traders almost fully expected another jumbo-sized hike in September. President of the Federal Reserve Bank of St. Louis, James Bullard, said he was leaning "more strongly" toward a third consecutive increase of that magnitude. His Kansas City counterpart, Esther George, stated that officials have a "clear-cut" case for continuing to withdraw financial assistance. Fed Governor Christopher Waller has stated that he favours "another significant" rate increase.
