Wall Street’s three main indexes scored record high closes on Tuesday, while UnitedHealth rallied, and a downward payrolls revision supported expectations the Federal Reserve will soon cut interest rates to shore up economic growth.
The S&P 500, Nasdaq, and Dow Jones Industrial Average each ended with fresh all-time highs, extending a rally this year fueled by excitement about artificial intelligence and expectations of lower borrowing costs.
The US economy likely created 911,000 fewer jobs in the 12 months through March than previously estimated, the government said, suggesting that job growth was already stalling before President Donald Trump launched his global tariffs.
Financial markets have priced in a 25 basis point cut at the Fed’s policy meeting next week, and futures trading suggests a nearly 10 percent chance of a 50 basis point cut, according to CME’s FedWatch tool.
Recent nonfarm payroll data for July and August also pointed to weakening labor market conditions.
“This does nothing to dissuade the Fed from moving 25 basis points,” said Paul Nolte, a market strategist at Murphy & Sylvest in Chicago, about the payrolls revision. “We don’t know month by month and won’t for a few more months yet, but it points out that labor is weak.”
UnitedHealth jumped after it said it expects enrollment in top-rated Medicare insurance plans to be in line with its expectations, which could mean bigger payments from the government to the health insurer.
JPMorgan Chase rose 1.7 percent after a senior executive said investment banking revenue will grow in the low double digits for the third quarter and that markets revenue would grow in the high teens percentage for the third quarter.
“That’s all good news, signs of a good, thriving economy. M&A is coming back after Trump’s Liberation Day put a screeching halt to that,” said Jed Ellerbroek, a portfolio manager at Argent Capital, referring to US tariffs announced in April.
