Good morning. Here's what happened overnight and what you need to know today.
1.
Rate rush: The Nasdaq notched a record high close, gaining 0.45% to 21,798.70, its 21st of the year, while the S&P 500 climbed 0.21% to 6,495.15 and the Dow rose 0.25% to 45,514.95. The advance came as traders have fully priced in at least a 25 basis points interest rate cut at the Fed’s meeting next week, with a 10% chance of a 50 basis point cut, according to CME data. Barclays now anticipates three cuts of 25 bps each in 2025, up from two, while Standard Chartered expects a 50 basis point trim in September. Meanwhile, Robinhood and AppLovin jumped after being added to the S&P 500 effective 22 September. EchoStar soared after agreeing to sell wireless spectrum licences to SpaceX. Oil prices rallied as the possibility of more sanctions on Russian oil outweighed OPEC+’s plan to raise output, then pared gains. And Japanese stocks rose as the yen weakened following the prime minister’s resignation. (Reuters)(Bloomberg)(WSJ)
2.
French confidence: France’s government collapsed again after Prime Minister François Bayrou lost a confidence vote he had called to highlight the urgency of tackling the country’s ballooning debt and deficit. The National Assembly rejected his government 364 to 194 — a crushing defeat in the 577-seat chamber. In office just nine months, Bayrou had proposed €44 billion ($78.49 billion) in annual savings, including freezing welfare payments and cutting two public holidays. The plan was blocked by opposition from the far left, far right and others. President Emmanuel Macron will accept Bayrou’s resignation on Tuesday and appoint a replacement “in the coming days,” according to a statement cited by Bloomberg. This is France’s fourth change of prime minister in 20 months, amid ongoing deadlock since Macron’s 2024 snap election. His support has fallen to 15%, according to a Verian poll for Le Figaro Magazine. Marine Le Pen, leader of the largest party in Parliament, demanded fresh elections. (Capital Brief)
