• Wall Street rallied on September 11, with the DJIA, S&P 500 and Nasdaq closing up by +0.31%, +1.07%, and +2.17%, respectively.
• Stocks rebounded on Wednesday, closing higher as gains in chip stocks lifted the technology sector and boosted the broader market. Investors weighed August inflation data that came in line with expectations, leading to a decreased probability of a more aggressive Fed rate cut.
• The 10-yr UST yield remained steady at 3.65%, while the 2-yr yield increased by +3.0 bps to 3.62%. Treasury yields fell as August CPI came in line with expectations, lowering the odds of a 50 bps Fed rate cut and weakening demand for safe-haven assets.
• US CPI for August eased to +2.5% YoY from +2.9% YoY in July, aligning with expectations and marking the smallest increase in 3.5 years. However, core CPI, which excludes food and energy, remained steady at +3.2% YoY, also matching forecasts.
• US MBA mortgage applications rose +1.4% for the week ending September 6, with purchase and refinancing sub-indices up +1.8% and +0.9%, respectively. The average 30-yr fixed mortgage rate fell -14 bps to 6.29%.
• In Europe, the British economy grew +1.2% YoY in July 2024, up from +0.7% in June, reflecting improved economic activity across key sectors. However, the growth rate was below forecasts of +1.4%.
• Global bond yields declined on Wednesday: the 10-yr German bund yield fell by -1.9 bps to 2.11%, the 10-yr UK gilt yield decreased by -5.8 bps to 3.76%, and the 10-yr Japanese JGB closed down by -4.4 bps to 0.86%.
