Investing.com– The S&P 500 closed higher Friday, closing out the month of August with a fourth-month win as easing economic concerns triggered a sharp rebound in stocks following a major selloff earlier this month.
At 16:00 p.m. ET (20:00 GMT), the gained 0.04%, and climbed 1%, the rose 228 points, or 0.63%. The S&P 500 was 2% for August, marking a strong comeback following its biggest loss in nearly two years on Aug. 5 after a weaker July jobs report triggered worries about a recession. But recession fears were soon cast aside after a slew of positive labor market data.
July Inflation firms up rate-cut expectations, but bigger cut bets fade
The core , the Fed’s preferred measure of inflation, rose 2.6% in July on an annual basis, compared with an estimate of 2.7%. On a monthly basis, it rose 0.2%.
The data added to expectations for the Fed to cut rates as soon as next month, with traders in a 68% chance for a 25 basis point cut, but now only a 30% chance for a 50 bps cut, compared with 37% last week.
“This reading should provide Chair Powell and the broader FOMC with continued comfort to proceed with rate cuts beginning at September’s meeting,” Macquarie said in a note.
Dell lifts annual forecasts, Ulta falls on guidance cut, Lulu gives up gains; Intel jumps on foundry spinoff report
Dell (NYSE:) stock rose over 4% after the tech giant lifted its annual forecasts following better-than-expected quarterly results underpinned by record AI server revenue.
Dell reported strong AI revenue, orders, and ISG margins in the quarter, UBS said, “validating that several of the issues last qtr were transitory as expected and not reflective of soft margins across its AI server business.”
Ulta Beauty (NASDAQ:) stock fell 4% after it cut its annual sales and profit forecasts, hurt by slowing demand for higher-priced cosmetics and fragrances at its stores.
Lululemon Athletica (NASDAQ:) gave up the bulk of its gains after the athletic apparel retailer cut its annual sales and profit forecasts amid slowing demand slowed in North America.
Intel (NASDAQ:) stock rose over 9% after Bloomberg reported hat the tech giant is considering splitting off its foundry business and scrapping plans for new factories, as it tries to weather a sharp slowdown.
A potential spin off Intel’s foundry business would create immediate value for shareholders, Wedbush said, as mounting losses in the business are weighing on Intel’s valuation.
(Peter Nurse, Ambar Warrick contributed to this article.)