This morning, Atlanta Fed Bostic mentioned that he supports one rate cut this year in Q4. This means it could happen in the November meeting, making it the longest pause between a hike and a cut ever.

However, Powell reiterated that the Fed doesn’t expect to lower rates until they gain more confidence inflation is decisively dropping to 2%. Adding, rate cuts could happen at “some point” this year.

The Street continues to expect at least 2 cuts.

On the economic front, bad news is good news. The ISM Manufacturing and Services employment components continue to show weakness.

Energy is the top performer this afternoon, as WTI crude oil futures extend recent gains.

Shares of Disney (DIS) are under pressure after news that Nelson Peltz's bid for a seat at the Disney board of directors has failed. 

Let’s see if the market can hold on to its gains.