FX.co ★ US Stocks Extend Recovery

U.S. stocks sustained their upward momentum as markets adjusted expectations for a more accommodative Federal Reserve policy. The Dow Jones Industrial Average increased by almost 1%, the S&P 500 rose by 0.4%, and the Nasdaq Composite climbed 0.3%. Financial and defensive sectors outperformed owing to a reassessment of short-term policy risks. The surprising 32,000 drop in ADP's private payroll numbers has now made a Fed rate cut seem almost inevitable. Wells Fargo and Citigroup each saw their shares rise by approximately 3%, benefiting from the prospect of easier monetary policy that could lower short-term funding costs and enhance the outlook for loan demand. Meanwhile, UnitedHealth experienced a jump of over 4%. Marvell soared more than 6% after raising its data center guidance and revealing stronger revenue and margin forecasts linked to increased demand for AI-related servers. In contrast, Microsoft stock dipped roughly 2% following reports that it had reduced AI sales quotas, causing momentary concern in the sector before the company issued a denial.