Dow Jones and S&P 500 Rise as Markets Price in Fed Rate Cut This Month

The major averages were mostly higher near noon, with the Dow Jones and S&P 500 rising as markets are now pricing in a high probability of a Fed rate cut this month. The current optimism follows a choppy start to the week, which saw bond yields spike and crypto slump, but those pressures have eased for now. Part of the rebound seems driven by strength in technology and AI-related equities and by broader global demand for U.S. equities amid a weaker dollar.Meanwhile, concerns about AI valuations and investment are also reflected in the markets, as Microsoft was slipping and weighing on the Nasdaq after The Information said the company was lowering software sales quotas linked to AI, though Microsoft denied the report.Looking to commodities, gold prices were edging higher as the "safe haven" asset looks to hit the $4,300 threshold one again. Oil prices were sharply higher following yesterday's API crude numbers and this morning's DOE data.Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.1. STOCK NEWS:Microsofthas cut targets for salespeople on certain AI products,, though the company told CNBC it has not lowered sales targetsAnthropic has picked a law firm to start work on its IPO,Marvellreportedand agreed to acquire Celestial AI in a roughly $3.25B dealMacy'sprovided areport for Q3American Eaglereportedearnings and revenue2. WALL STREET CALLS:AreteUberwith autonomous vehicles risk seen as overdoneVertexto Overweight at Morgan StanleyWayfairto Hold at JefferiesJPMorganWendy'spending more defined strategyOraclewith an Overweight at Wells Fargo3. AROUND THE WEB:Eli Lillywill delay resuming U.K. investments until it observes changes in drug approvals, despite a recent U.S.-U.K. agreement to raise NHS drug spending and ease approval for costly medicines,Instacarton Tuesday sued New York City in an effort to block enforcement of five laws affecting the grocery delivery company, including rules governing minimum pay for app-based workers and disclosures to customers about tipping,Saudi Arabia's government investment fund, the Public Investment Fund, PIF, is set to take nearly full ownership of Electronic Arts,Netflix'sproposed acquisition of Warner Bros. Discovery'sstudios and streaming unit would likely lower the costs for consumers by bundling Netflix and HBO Max,Smartmatic and Fox News (FOX) have both asked a New York judge to rule in their favor in a $2.7B defamation case dealing with the vote-rigging claims broadcast by Fox during the 2020 U.S. presidential election,4. MOVERS:Capricor Therapeuticsincreases after announcing Phase 3 HOPE-3 studyPharvarisgains in New York after announcing its RAPIDe-3 studyAevahigher after a European passenger OEM selected the company as itsAlexandria Real Estatelower after45%Pure Storageand GitLabfall after5. EARNINGS/GUIDANCE:Sprinklr, with EPS and revenue beating consensusEnbridgefor FY25 and FY26Thor Industries, with CEO Bob Martin commenting, "The quarter finished stronger than we expected"Dollar Treeand raised its guidance for FY25PayPalINDEXES:Near midday, the Dow was up 0.60%, or 286.70, to 47,761.16, the Nasdaq was up 0.07%, or 15.56, to 23,429.23, and the S&P 500 was up 0.20%, or 13.53, to 6,842.90.