Wall Street Is Making Bullish Bets on the Economy

In recent weeks, government data has been mixed, showing both disappointing job gains and robust economic growth. Investor demand has been particularly strong for the stocks of companies exposed to swings in the economy such as retailers. Despite expectations for some further interest-rate cuts, yields on longer-term U.S. Treasurys remain stubbornly high—a sign investors don’t expect a recession that would trigger deeper cuts.