Small businesses see growth despite tariffs and AI
Small businesses report seeing growth and hiring workers. Larger businesses are raising prices and laying off workers because of tariff concerns.
Fox – 5 Atlanta
U.S. stock futures are higher after the broad S&P 500 and tech-heavy Nasdaq closed at record highs on hopes for a rate cut next month.
After a tame July inflation report, expectations jumped for a rate cut at the Federal Reserve’s policy meeting in September. The CME FedWatch tool that tracks the market’s expectations for a rate move at each Fed meeting suggests a more than 94% chance of a Fed rate cut. That’s higher than the roughly 85% chance ahead of the consumer inflation data.
Before the market opens, investors get another look at inflation but this time, from the perspective of businesses instead of consumers. The producer price index tracks the prices businesesses pay each other for their goods and services.
At 6 a.m. ET, futures linked to the blue-chip Dow rose 0.24%, while S&P 500 futures added 0.17% and Nasdaq futures gained 0.24%.
Would a quarter-point rate cut be enough?
If the Fed lowers rates in September, Treasury Secretary Scott Bessent suggested in a Fox Business interview the Fed consider a larger, half-point cut.
The CME FedWatch tool shows the market expects only a 0.25% cut.
Two days after the Fed left rates unchanged on July 30, revised data showed weaker job growth for May and June than official figures had previously indicated. Bessent said had the Fed had that revised data before the meeting, it might have lowered rates instead of keep them unchanged.
The Fed “could have been cutting in June, July,” Bessent said.
Separately, Bessent said he was “hopeful” Stephen Miran would be approved by the Senate to fill former Governor Adriana Kugler’s seat on the Federal Reserve Board by the September meeting. Kugler resigned on Friday, and Miran would finish out her term.
Corporate news
- Cava missed second-quarter revenue growth estimates and lowered its full-year same-store sales forecast.
- Coreweave topped second-quarter sales expectations and increased its third-quarter and full-year revenue outlook above the Street’s view. Its adjusted net loss widened significantly from a year ago and missed analysts’ expectations.
- Stablecoin issue Circle said it plans to sell 10 million Class A shares to the public, 2 million of which will be offered by the company and the rest from shareholders.
Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.
