U.S. stock markets were eyeing another positive day on Wall Street after markets hit their latest record highs. Investors were eyeing upcoming data for clues about the health of the economy and the likelihood of another major rate cut.
The S&P 500 (^GSPC) and Dow Jones Industrial Average (^DJI) opened higher on the heels of record closes for both major indexes, rising about 0.1% and 0.2%, respectively. The tech-heavy Nasdaq Composite (^IXIC) held its flatline.
The question now is whether the U.S. economy could slip into recession, with concerns fueled by a surprisingly weak reading on consumer confidence. The debate centers on whether the Federal Reserve cut rates by a larger-than-usual 0.5% in response to a slowing economy, and what further malaise means for another hoped-for deep cut.
Read more: What the Fed’s Rate Cut Means for Bank Accounts, CDs, Loans and Credit Cards
Mortgage applications rose to their highest level since 2022, according to MBA data released before the bell. The growth was driven by homeowners looking to refinance their loans as interest rates fall.
Data watchers will get the latest reading on home sales to look for more insight later Wednesday. But the spotlight is firmly on Thursday’s second-quarter GDP print and Friday’s crucial reading on the PCE index — the Fed’s preferred gauge of inflation.
The parade of Fed speakers continues with Governor Adriana Kugler, whose remarks later Wednesday will also be scrutinized to gain insight into the size and pace of the rate cuts to come.
Meanwhile, the boost to markets from China’s massive stimulus measures has faded as skepticism mounts over whether the measures will actually revive the economy.
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