Stocks climb as rate bets ease and crypto stays bid

The big picture. U.S. stocks finish higher across the board. The S&P 500 rises 0.7%, the Nasdaq Composite adds 0.8%, the Dow gains 0.1%, and the Russell 2000 rises 0.2%. The move comes alongside a calmer volatility backdrop, with the VIX 9-day dropping 32.5% and the 30-day VIX at 14.63.

Sector trading tilts positive, led by Communication Services up 2.1%, Real Estate up 1.4%, Staples up 1.1%, and Tech up 1.0%. Materials is the weakest sector, down 0.5%, while Health and Industrials are roughly flat. Workday jumps after a takeover report, and Sandisk and Salesforce also draw attention in the day’s equity tape.

Treasuries rally as yields fall, with the 5-year down 1.4%, the 10-year down 0.9%, and the 30-year down 0.7%. FX is mixed, with the dollar index slipping 0.1%, EUR/USD down 0.1%, and USD/JPY up 0.1%. Reuters also reports wholesale prices were flat in July, below expectations, and stocks are rising as traders reduce rate hike bets.

Outside the U.S., Asia is mixed to higher, with the Kospi up 3.7% and the Nikkei up 0.8%, while the Hang Seng falls 0.8%. Europe is softer, with the FTSE 100 down 0.6%, the CAC 40 down 0.5%, and the Stoxx 600 down 0.2%. In commodities, crude slides more than 2%, gasoline drops 9.6%, gold is flat, and corn and wheat rise.

Crypto ends higher but not by much. Bitcoin adds 0.3% to 63,560.8594, Ethereum gains 0.7%, and Solana rises 1.1%. The total crypto market cap increases 0.2% to $2.3T, with Bitcoin dominance at 56.2% and Ethereum at 10.1%.