CNBC Daily Open: Dow jumps 700 points, gold hits record, HSBC new CEO
This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here .
Dow scores another record
The Dow Jones Industrial Average rose more than 700 points to close at another record high as the bull run appeared to broaden. The small cap-focused Russell 2000 rose for the fifth straight day, rising 3.5%. The S&P 500 gained 0.64%, while the Nasdaq inched up 0.2% as tech was left out of the rally. The yield on the 10-year Treasury slipped and U.S. oil prices also declined.
100% certainty
Traders are now certain that the Federal Reserve will cut interest rates by September, with a 93.3% probability of a quarter percentage point cut and a 6.7% probability of a half percentage point cut. This certainty stems from the recent consumer price index update, which showed annual inflation slowing to 3%, the lowest in three years. A month ago, the odds of a September rate cut were only around 70%.
Gold hits fresh highs
Gold prices surged to a record Wednesday on rising expectations of an interest rate cut in September. Investors are turning to gold amid softer inflation data and dovish comments from Federal Reserve Chair Jerome Powell, boosting the likelihood of rate cuts this year. Spot gold prices rose 0.5% to $2,482.29 per ounce, hitting an all-time high according to LSEG data. Gold futures climbed to $2,478.4 an ounce. Gold has rallied this year as central banks bought the precious metal as geopolitical risks increased interest in safe-haven assets. You can read more here as Ray Dalio, the founder of the world's largest hedge fund Bridgewater Associates, explains the