UPDATE: Major tech stocks are surging, lifting the S&P 500 and Nasdaq in early trading today as growing expectations for a Federal Reserve interest rate cut fuel investor optimism. The tech sector, led by a 3.0 percent rise in Nvidia and a remarkable 5.0 percent jump in Dell Technologies, is driving the market higher ahead of critical inflation data set to be released later this week.
Just moments ago, the S&P 500 gained 25.23 points, or 0.37 percent, reaching 6,837.86, while the Nasdaq Composite climbed by 197.84 points, or 0.85 percent, to 23,473.97. Meanwhile, the Dow Jones Industrial Average rose slightly by 15.72 points, or 0.03 percent, hitting 47,304.31.
The surge follows a rocky start to December, as all three major indexes faced declines amid rising Treasury yields and a sell-off in crypto-linked shares. Recent data indicates a cooling economy, leading traders to bet on an 87.4 percent chance of a 25-basis-point cut at next week’s Federal Reserve meeting—an increase from last month’s expectations, according to the CME Group’s FedWatch Tool.
Investor attention now shifts to the upcoming release of the Personal Consumption Expenditures (PCE) Index on Friday, which is the Fed’s preferred inflation gauge. This data will be crucial in shaping the central bank’s policy decisions.
Peter Andersen, founder of Andersen Capital Management, stated, “
Even though there are some pockets of weakness, in general the trend is strong and so I don’t think lower rates are warranted at this point.
” His comments highlight the ongoing debate among policymakers regarding the path of interest rates.
Additionally, markets are closely monitoring the upcoming decision on who may succeed Jerome Powell as Fed chair when his term expires next year. Reports suggest that Kevin Hassett, an economic adviser to the White House, is a leading candidate, with an announcement expected before Christmas.
In corporate news, Boeing shares jumped 6.0 percent after the company announced that higher deliveries would drive positive cash flow next year. Warner Bros Discovery also saw a 1.0 percent increase amid reports of new bids, including interest from Netflix.
In the cryptocurrency market, stocks like Coinbase and Strategy have rebounded, rising 4.2 percent and 2.4 percent, respectively, as Bitcoin prices stabilize following a sharp decline last session.
Today, Federal Reserve Vice Chair for Supervision Michelle Bowman is set to testify before the House Financial Services Committee regarding oversight of financial regulators, adding another layer of scrutiny to the Fed’s potential moves.
On the geopolitical front, crucial discussions are slated as US special envoy Steve Witkoff and Jared Kushner, former President Trump’s son-in-law, prepare to meet with Russian President Vladimir Putin to explore pathways to end the ongoing conflict in Ukraine.
As trading continues, the market remains poised for further shifts, with declining issues slightly outnumbering advancers on the NYSE, while the Nasdaq reflects a more favorable ratio of advancing issues.
Stay tuned for more updates as this story develops, particularly as we approach the release of key economic indicators and policy decisions from the Federal Reserve.
