Tuesday, October 6, 2026
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New expectations of interest rate cuts by the Federal Reserve give strength to Wall Street

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Lower-than-expected US employment numbers reinforce expectations that the Federal Reserve may cut interest rates later this year, which has encouraged investors.

Wall Street's main indexes rose on Monday, extending last week's gains, as investors weigh the possibility of the Federal Reserve being able to cut interest rates later this year.

The benchmark Standard & Poor's 500 index rose 1.03% to 5,180.74 points, and the tech-heavy Nasdaq Composite rose 1.19% to 16,349.25 points. The Dow Jones Industrial Average rose 0.46% to 38,852.27 points.

The global indices, the Standard & Poor's 500 and Nasdaq, touched their highest levels in three weeks during the session. This comes after US employment numbers for April, released on Friday, were lower than expected, showing some relief in the labor market.

“The economic news has been positive. It continues to provide signs of the economy's fundamental strength, which should allow corporate earnings growth to continue to foster an environment in which stock prices can rise,” said Mark Luchini, chief strategist at Janney. Montgomery Scott.

“At the same time, it is not so high that it once again threatens the Fed's position,” he added.

Among the main market movements was Apple's stock, which fell 0.91% to $181.71, after Berkshire Hathaway, led by Warren Buffett, announced that it had sold more than 10 million shares of the technology giant's stock.

Focus remains on a speech by Richmond Fed President Thomas Barkin, who stated that the current level of interest rates should be enough to cool the economy and return inflation to the 2% target. However, the strength of the labor market should force Fed governors to wait.

This comment is in line with what the central bank indicated last week, that it is leaning towards a possible cut in interest rates, but wants to have “more confidence” that inflation will continue to fall.

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