Stocks Hit Records on Soft Jobs, Rate-Cut Bets

Weaker August jobs data boosted odds of aggressive Fed easing, sending U.S. equities to fresh intraday records while AI tailwinds powered chipmakers. Consumer discretionary lagged after Lululemon’s guidance cut.

TL;DR:

• 📈 Wall Street hits record highs
• 🤖 Broadcom soars on AI outlook
• 🏦 Traders price 50 bp Fed cut
• 🧘 Lululemon plunges after forecast cut

Wall Street Hits Record Highs

U.S. stocks set record intraday highs after August employment data came in softer than expected, reinforcing bets on imminent Federal Reserve rate cuts. Lower yields and a friendlier discount-rate backdrop lifted duration-sensitive sectors, with broad participation across large-cap benchmarks. Risk appetite improved as investors leaned into cyclical and tech exposure on easing macro pressure. Source

Broadcom Soars on AI Outlook

Broadcom surged 13% after forecasting robust AI-driven revenue in fiscal 2026 and topping quarterly estimates, igniting a rally across semiconductor peers. The guidance underscored sustained data-center and networking demand, with investors rewarding clear visibility into AI infrastructure growth. The move added meaningful points to major indices and reinforced tech leadership. Source

Traders Price 50 bp Fed Cut

Following the weak jobs print, rates markets increased the probability of a 50-basis-point cut at an upcoming Fed meeting. Easing expectations pressured front-end yields and supported risk assets, while the dollar moderated as policy paths were repriced. Focus shifts to next data releases to confirm a dovish pivot. Source

Lululemon Plunges After Forecast Cut

Lululemon tumbled 17.5% after slashing its annual profit outlook, weighing on the consumer discretionary complex. Investors cited North American softness and margin pressure as key concerns, rotating toward defensives amidst single-stock volatility. The setback contrasted with tech strength, highlighting a bifurcated tape beneath the index-level records. Source