Global markets experienced a rally with stocks rising and bond yields falling after Federal Reserve Governor Christopher Waller indicated he would be open to maintaining current interest rates if inflation showed continued signs of easing. This sentiment led money markets to reduce their expectations for a September Fed rate hike.
The S&P 500 saw its largest monthly gain, with megacap stocks performing particularly well. The dollar weakened, hitting its lowest level since May. Concurrently, Bitcoin surpassed $80,000, and the Japanese yen strengthened significantly as traders increased their bets on interest rate hikes by the Bank of Japan, while also remaining vigilant for potential intervention to support the currency. Oil prices, however, wavered amidst these market movements.
