S&P 500 Rises as Fed-Cut Bets Sink Treasury Yields: Markets Wrap

Wall Street traders drove stocks higher as bond yields sank after the latest economic data spurred speculation the Federal Reserve will cut interest rates twice this year to prevent a recession.

The S&P 500 rose for a fourth straight day. Despite the gain, caution lurked in the background after a furious rally spurred worries about an overheated market, with the pendulum swinging in favor of defensive dividend-payers that had underperformed in the past month. Meta Platforms Inc. paced losses in big tech on a news report it was delaying the rollout of a flagship AI model. In late hours, Applied Materials Inc. gave a tepid forecast.