Wall Street surges on tech rally, rate cut optimism
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But other policymakers have voiced caution, reflecting division within the central bank ahead of December’s FOMC meeting.
Still, investors are pricing in a 76.9% chance the Fed will deliver a 25-basis-point interest rate cut next month, compared with 42% a week earlier, according to CME Group’s FedWatch Tool.
“It’s a combination of rate-cut enthusiasm, which has completely turned around since Williams made his comments on Friday morning, and the usual fear of missing out,” said Steve Sosnick, chief market analyst at Interactive Brokers.
TECH VALUATION WORRIES TEMPORARILY ON HOLD
Monday’s gains were a relief for Wall Street, having hit a volatile patch in November as investors worried the AI boom may be morphing into a bubble, while a prolonged U.S. government shutdown starved them of data to help gauge the health of the world’s largest economy.
The S&P 500 and Nasdaq are headed for monthly losses in November, and are on track for their steepest declines since fears of a tariff hike sparked a selloff in March. Analysts broadly flagged periods of volatility could still flare up.
CONSUMER RESILIENCE IN SPOTLIGHT AS HOLIDAY SEASON KICKS OFF
September retail sales and producer prices data are expected this week, ahead of the holiday shopping season that starts with the Thanksgiving holiday on Thursday, extending into Black Friday and Cyber Monday.
Spending trends are coming under sharper scrutiny as a flurry of layoff announcements, rising unemployment data and U.S. tariffs cloud consumer sentiment. Even so, the National Retail Federation expects holiday sales to top $1 trillion for the first time.
“The consumer sentiment numbers are still lousy. But it’s telling us the consumer is nervous but still somewhat resilient,” Sosnick said.
Some U.S. health insurers and hospital operators gained after a report said Trump’s health plan could see subsidy extensions for two years.
Advancing issues outnumbered decliners by a 1.96-to-1 ratio on the NYSE and by a 2.18-to-1 ratio on the Nasdaq.
The S&P 500 posted 17 new 52-week highs and two new lows while the Nasdaq Composite recorded 87 new highs and 88 new lows.
Reporting by Johann M Cherian, Pranav Kashyap and Shashwat Chauhan in Bengaluru; Editing by Krishna Chandra Eluri
Our Standards: The Thomson Reuters Trust Principles.
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