Dow and S&P 500 Hit Record Highs

Stocks closed at fresh highs as rate-cut odds increased and flows rotated into equities, even as a U.S. government shutdown dimmed near-term data visibility and pressured the dollar.

TL;DR:

📈 Global equity funds see 11-month inflows
🏦 BofA shifts to October Fed cut
💵 Dollar slides amid shutdown delays
📊 Dow and S&P notch records

Global Equity Funds See 11-Month Inflows

Risk appetite improved as global equity funds drew an estimated $49.19 billion, the strongest weekly intake in nearly a year. The rotation into stocks supported broader risk assets and steadied credit tone into the weekend, reflecting confidence in a near-term policy pivot. Source

BofA Shifts to October Fed Cut

Bank of America pulled forward its forecast for the Federal Reserve’s first rate cut to October, citing softening labor signals and easing inflation pressures. The call underpinned rate-sensitive sectors and extended the bid for duration as markets priced a shallower front end in yields. Source

Dollar Slides Amid Shutdown Delays

The U.S. dollar weakened as a government shutdown delayed key data releases, reducing clarity on near-term growth and inflation trends. With visibility impaired and cut odds rising, traders leaned defensive on the greenback while monitoring BOJ dynamics and election implications. Source

Dow and S&P Notch Records

The Dow and S&P 500 closed at record highs despite Washington’s standoff, while the Nasdaq lagged on rotation under the surface. Easing-policy optimism outweighed shutdown noise, keeping indices pinned near highs into the week’s close. Source Source

Federal Reserve Meeting Minutes Released