Bond yields surge as it becomes glaringly evident the Fed won’t cut rates until September

Both the S&P 500 and Nasdaq Composite achieved record highs following strong employment data, with 147,000 jobs added in June and the unemployment rate dropping to 4.1%. This unexpected growth reflects market resilience.

The market anticipates the Federal Reserve will delay rate cuts until at least September, evidenced by traders adjusting their positions on bond yields. Current sentiment reflects a growing confidence in economic stability.

Political developments, including a new US-Vietnam trade agreement and advancing tax legislation, could further influence market dynamics. Investors are optimistic about navigating trade barriers amid the favorable economic outlook.