Stocks jump on hope for September rate cut : Market Domination Overtime

On today’s episode of Market Domination Overtime, Hosts Julie Hyman and Josh Lipton break down the market close and some of the top stories that dominated the trading week.

US equities closed out Friday’s session on a high note. The Dow Jones Industrial Average (^DJI) recaptured 650 points, a 1.6% gain, while the Nasdaq Composite (^IXIC) and S&P 500 (^GSPC) both rose by over 1%. Merrill and Bank of America Private Bank senior investment strategist Lauren Sanfilippo believes that second quarter earnings will indicate whether a market rotation will continue, stating, “if that 493, the other stocks, will catch up and the Mag 7 will catch down,” potentially leading to a broadening out in the market.

Vice President Kamala Harris is positioning herself for a face-off against former President Donald Trump in the upcoming presidential election. However, with inflation concerns still lingering, her challenge lies in convincing voters of the economic progress made during the Biden administration. Yahoo Finance senior columnist Rick Newman analyzes the political landscape, discussing how Harris needs to convince voters she is the right person to lead the economy.

Lineage (LINE) debuted on the Nasdaq on Thursday, raising $4.4 billion in its IPO (initial public offering) and making it the largest IPO seen in 2024. With inflation putting pressure on all corners of the economy, the market has seen a dip in IPOs. Citi co-head of equity capital markets for North America Paul Abrahimzadeh believes that “the private market is starting to thaw” in the post-pandemic period: “The market is showing some green shoots. We’re seeing an increase in valuations for sequential rounds. We’re seeing less structure in the current period. But the reality is the IPO market’s offering excessive demand. There’s plenty of demand to get companies public at rich valuations. And deals are generally doing well.”

Finally, Julie Hyman and Josh Lipton preview the week ahead, from Big Tech earnings to July jobs data.

This post was written by Melanie Riehl