The most important macro event last night was the Bank of Canada's interest rate cut, which was the first rate cut since 2020. The rate cut was 25 basis points, which was in line with market expectations. Canada also became the first central bank in the Group of Seven to start an easing cycle. In addition, the Governor of the Bank of Canada also said that it is reasonable to expect further rate cuts.

The European Central Bank will also announce its latest interest rate decision at 8:15 tonight. It is said that the probability of a rate cut has reached 95%. Although the interest rate policies of Canada and Europe do not have as much influence on the market as the United States, they still play a certain demonstration role. The interest rate hike wave was also initiated by Canada that year. If we strictly compare it with the high interest rate period, the Federal Reserve may really follow suit in July. In addition, the small non-farm ADP employment number last night also ushered in good news, which was significantly lower than expected. This shows that the labor market has further cooled down, which greatly boosted the confidence in the interest rate cut.

CME also updated the latest expectations for US interest rate cuts. The probability of a rate cut in July has increased to 18.3%, and the probability of a rate cut in September is close to 70%. The cumulative probability of a rate cut before the end of the year becomes 41.1% for two times, 28.1% for one time, 21.3% for three times, and 3% for four times. The sharp increase in expectations for rate cuts also led to new highs in the S&P and Nasdaq last night. Nvidia's market value exceeded 3 trillion and surpassed Apple.