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The Fast Five → Powell gives the September rate cut signal, bank stocks rally to two-year high, Boeing taps aerospace veteran as new CEO, Ackman’s Pershing Square withdraws IPO amid low demand, and Nvidia surges on Microsoft’s magic words …

Calendar: (all times ET)

• Today: Initial jobless claims, 8:30 AM

• Tomorrow: Employment report, 8:30 AM

Your 5-minute briefing for Thursday, August 1:

BEFORE THE OPEN

PRE-MARKET

MARKETS

• US stocks surged after J Pow signaled a September rate cut

  • S&P and Nasdaq posted their best day since February

  • Rate futures now reflect a 17% chance of a 50 bps rate cut in September and broadly 75 bps of cuts by year-end

• Canada's TSX index climbed 1.3% to an ATH

• Australia's ASX 200 climbed 1.7% to an ATH

• US 10Y yields posted its biggest monthly decline YTD

• Japan 2Y and 5Y yields hit 0.45% and 0.66% respectively, a 15 year-high

• Yen rose 1.4% versus the dollar to its highest since March

• Oil prices surged on Mideast tensions

• Swaps markets priced in a 65% chance of a BoE rate cut today

EARNINGS

• Meta rose 7% after beating Q2 estimates and issuing upbeat guidance on strength in ad revenue and growth in AI (link)

• Qualcomm rose 8% after beating Q3 estimates and issuing strong guidance thanks to strong growth in phone chip sales (link)

• Boeing reporter a larger-than-expected Q2 loss and missed revenue estimates as its airplane and defense businesses continue to struggle (link)

• KKR's Q2 net income soared by 49% on record-high fee earnings (link)

• What we're watching this week:

  • Today: Apple, Amazon, Intel, Coinbase

  • Friday: ExxonMobil, Chevron

• Full calendar here

NEWS BRIEFING

Chair Powell Gives the September Rate Cut Signal Traders Were Hoping For

Bank Stocks Rally to Two-Year High in Sentiment ‘U-Turn’

• Slowing wage gains restrain US labor costs in second quarter (link)

• Traders rush back to oil options to hedge Mid-East political risk (link)

• Wall St panel endorses T-bill supply scorned by republicans (link)

• Japan raises interest rates for second time since 2007 (link)

• Nvidia’s stock surges 13% as Microsoft says the magic words (link)

• Meta shares pop on revenue and earnings beat (link)

• Boeing taps new CEO, aerospace veteran Ortberg (link)

• Bill Ackman’s Pershing Square withdraws IPO as demand for offering waned (link)

• Delta Air Lines CEO says CrowdStrike outage to cost carrier $500 mln (link)

• Reddit CEO says Microsoft needs to pay to search the site (link)

• Bungie is laying off 220 employees and moving others to PlayStation (link)

CRYPTO

• Grayscale's Bitcoin Mini Trust (BTC) began trading on NYSE Arca with a 0.15% fee, the lowest among spot Bitcoin ETFs (link)

• US spot Ethereum ETFs saw $33.7 million in net inflows, ending a streak of negative flows (link)

• The Bahamas passed DARE 2024, new crypto legislation aimed at restoring its status as a digital asset hub post-FTX collapse (link)

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