Jumbo-Sized Rate-Cut Expectations Lift Wall Street Indexes to New Record Highs

Barry Adams
09 Sep, 2025
New York City

Wall Street indexes advanced on Tuesday amid growing speculation that the Federal Reserve could deliver a larger-than-expected rate cut next week.

The S&P 500 index edged up 0.1%, and the Nasdaq Composite inched higher 0.2%, ahead of two key inflation reports this week. 

Consumer price inflation is likely to accelerate to an annual pace of 2.9% in August from 2.7% in July, and producer price inflation is expected to be stable at 3.3%. 

Rising inflationary pressures are likely to complicate policymakers' job amid deteriorating labor market conditions. 

The Fed's dual mandate requires policymakers to raise rates when inflation is on the upswing but trim rates when the job market is weakening.

For now, investors are holding out for a rate cut of at least 25 basis points, and some traders are hoping that the Fed may choose to deliver a one-time 50 basis point rate cut. 

 

U.S. Stock Movers 

Fox Corp. Class A declined 4.8% to $59.50, and the company announced that the Murdoch family has resolved its dispute over the trust, with Lachlan Murdoch gaining control of the conservative media complex.

Three Murdoch children—Elisabeth, James, and Prudence—will receive $1.1 billion each and cease to be beneficiaries of the trust that has significant stakes in New Corp. and Fox Corp.

Fox Corp. is facing a $2.7 billion defamation lawsuit from voting technology company Smartmatic USA Corp. 

News Corp. Class A decreased 4.5% to $28.60.

Dell Technologies decreased 0.8% to $122.01 after the company announced the resignation of chief executive officer Yvonne McGill, effective Tuesday. 

David Kennedy, senior vice president of global operations, was named as the interim CFO. 

Nebius Group NV jumped 54% to $98.85 after the artificial intelligence infrastructure provider signed a multi-year deal with Microsoft to provide cloud computing power for artificial intelligence-related queries. 

Apple Inc. decreased 0.3% to $237.15 ahead of the company's releasing new versions of its devices, including a new iPhone.