• Dow Jones reclaims 39,000.00 handle as markets rebound post-Juneteenth holiday.
• Softening US data helps to bolster rate cut expectations.
• US PMIs still loom ahead on Friday.

The Dow Jones Industrial Average (DJIA) is surging upwards on Thursday as investors return to markets with a vengeance following the midweek Juneteenth holiday that shuttered US exchanges on Wednesday. US economic data cooled with May’s Building Permits and the Philadelphia Fed Manufacturing Survey for June both declining, while Initial Jobless Claims recovered less ground than expected to notch another print above the four-week average.

With US economic figures broadly missing the mark, investor hopes of the Federal Reserve (Fed) getting bullied into a rate cut sooner rather than later are pinned to the ceiling. According to the CME’s FedWatch Tool, rate markets are pricing in upwards of a 70% chance that the Fed will deliver at least a quarter-point cut on September 18.