Dow Roars Back As Rate Cut Bets Take Center Stage

The Dow has snapped out of its funk with the kind of move you feel on every trading floor in New York. The index has ripped higher by roughly six hundred points in a single session, part of a broader surge fueled by one idea that keeps gaining traction. Maybe the next move from the Fed is not another hike. Maybe it is a cut.

As Treasury yields step down from recent highs, stock buyers are finally getting some relief. High rates have been the wet blanket on risk assets all year. Once the market senses that pressure easing, money floods back into everything from industrial giants to banks and beaten up consumer names.

The rebound does not erase the damage from the earlier selloff, but it changes the tone. Instead of obsessing over how long rates will stay elevated, investors are running scenarios about what a lower cost of money would do to corporate profits next year. For now, the path of least resistance is up, and the Dow is reminding everyone it can still move when the macro backdrop shifts.