UPDATE: Wall Street’s main indexes are surging today, with the S&P 500 and Nasdaq reaching two-week highs as investors ramp up bets on a potential interest rate cut by the Federal Reserve in December. Early trading shows the Dow Jones Industrial Average jumping 280.84 points or 0.60% to 47,393.29, while the S&P 500 rises 39.66 points or 0.58% to 6,804.90, and the Nasdaq Composite climbs 163.29 points or 0.71% to 23,188.89.
Investors are reacting to new economic data, including a drop in US jobless claims to 216,000 for the week ending November 22, significantly below the projected 225,000. This signals a resilient labor market, fueling speculation that the Fed will have leeway to cut rates. According to CME’s FedWatch tool, traders are now pricing in an 84.9% chance of a 25-basis-point rate cut next month, nearly doubling last week’s odds.
Kim Forrest, chief investment officer at Bokeh Capital Partners, stated, “The economy isn’t slipping into recession but it’s weak enough to allow the Fed another cut.” This sentiment is crucial as the Fed’s upcoming Beige Book, which offers insights into economic conditions, is set to be released later today.
Traders are also closely monitoring reports suggesting that White House economic adviser Kevin Hassett is a frontrunner for the next Fed chair, amidst growing concerns about political influence on monetary policy. Meanwhile, all S&P 500 sub-sectors are in the green except for communication services, impacted by declines in Alphabet shares.
Wall Street’s recent recovery from a tech-led sell-off has helped mitigate monthly losses, although the indexes are still on track for their largest declines since the US tariff rout earlier this year. Notably, Dell shares surged 2.3% after exceeding quarterly forecasts, driven by robust demand for its AI server solutions.
As the holiday shopping season approaches, with Thanksgiving tomorrow followed by Black Friday and Cyber Monday, traders are preparing for fluctuations. The National Retail Federation anticipates this year’s holiday sales will surpass $1 trillion for the first time, despite mixed forecasts from major retailers like Walmart and Target.
The market remains volatile as consumers face pressures from tariff-induced price hikes and corporate layoffs. Notably, HP saw a 2.3% decline after issuing disappointing profit forecasts and announcing job cuts.
With advancing issues outnumbering decliners by a ratio of 2.46-to-1 on the NYSE and 1.93-to-1 on the Nasdaq, the S&P 500 has recorded 14 new 52-week highs today, indicating strong bullish momentum. The Nasdaq Composite has also seen 60 new highs and 23 new lows, emphasizing the urgency of current market conditions.
As the day unfolds, investors will be keenly watching for further developments from the Fed and economic indicators that could shape market trajectories in the coming weeks. Stay tuned for more updates.
