Bonds & Stocks
The relentless rally in stocks powered ahead amid signals that major central banks are on track to cut interest rates this year, which would bolster the outlook for corporate earnings.
Equity traders kept bidding up the market after the latest round of messaging from global policymakers was not as hawkish as feared. S&P 500 climbed to 5,250 — set for its 20th record this year. The Nasdaq 100 rose 1%, with Nvidia Corp. leading gains in megacaps and Micron Technology Inc. soaring on a strong forecast. Two economic bellwethers — FedEx Corp. and Nike Inc. — are set to report earnings after the closing bell. Treasury 10-year yields fell two basis points to 4.26%.
Economy
Pressure at regional banks, a continuing downturn in US office prices and elevated interest rates have money managers piling back into bearish wagers on one of their favorite sectors: commercial property. Data center real estate investment trust Equinix Inc. slumped to the lowest since January on Wednesday after Hindenburg Research said it was betting against the firm’s shares, while S&P Global said earlier this month that REITs are the most shorted stocks globally. Investors have been rattled in recent weeks by lenders including New York Community Bancorp. and Deutsche Pfandbriefbank AG setting aside larger provisions for property-loan losses.
World
The Swiss National Bank unexpectedly cut its key interest rate by 25 basis points, moving months ahead of global peers as policymakers try to prevent gains in the franc.
Officials in Zurich lowered their benchmark to 1.5%, the first such reduction for one of the world’s 10 most-traded currencies since the pandemic abated. While some investors were betting on such a cut, most economists predicted the rate would stay unchanged at least until June. The franc tumbled after the decision, falling 1% against the euro to its weakest level since July 2023. It dropped 1.2% against the dollar to a fresh four-month low.