Wall Street's main stock indexes gained on Monday as expectations of interest rate cuts this year by the Federal Reserve grew stronger following a soft payrolls data last week.
The benchmark S&P 500 and the blue-chip Dow closed at three-week highs on Friday after data showed U.S. job growth slowed more than expected in April, taking pressure off the U.S. central bank to keep rates higher for longer.
Traders are currently pricing in rate cuts worth 48 basis points from the Fed by the end of 2024, with the first cut expected in September or November, according to LSEG's rate probability app. In recent weeks, traders had priced in just one cut due to signs of sticky inflation.
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