UPDATE: Major indices on Wall Street are surging as the tech sector rallies amidst increasing bets on potential interest rate cuts. The S&P 500 and Nasdaq Composite rose sharply, propelled by strong performances from tech giants like Nvidia, which climbed 3.0 percent, and Dell Technologies, which jumped 5.0 percent.
Investors are positioning themselves ahead of key inflation data set to be released this Friday, which could significantly influence the Federal Reserve’s policy decisions next week. Recent economic reports indicate a cooling economy, prompting market speculation about a 25-basis-point rate cut during the Fed’s upcoming meeting. Current odds of a rate cut have soared to 87.4 percent, nearly doubling since last month, according to the CME Group’s FedWatch Tool.
In early trading on Tuesday, December 5, the Dow Jones Industrial Average gained 15.72 points, or 0.03 percent, reaching 47,304.31. The S&P 500 rose by 25.23 points to 6,837.86, while the Nasdaq Composite increased by 197.84 points to 23,473.97.
Boeing emerged as a standout performer, soaring 6.0 percent after announcing that increased deliveries will drive positive cash flow in the upcoming year. Meanwhile, Warner Bros Discovery saw a 1.0 percent rise amid reports of renewed bidding interest, including an offer from Netflix.
Investor attention is also focused on the anticipated testimony of Federal Reserve Vice Chair for Supervision Michelle Bowman before the House Financial Services Committee on Tuesday, addressing oversight of financial regulators. The market remains abuzz as it prepares for the release of the Personal Consumption Expenditures (PCE) Index, the Fed’s preferred inflation measure, which could further shape expectations for monetary policy.
Geopolitically, US special envoy Steve Witkoff and Jared Kushner, former President Trump’s son-in-law, are scheduled to meet with Russian President Vladimir Putin to discuss potential resolutions to the ongoing war in Ukraine, a critical topic gaining global attention.
While declining issues slightly outnumbered advancers on the NYSE, the Nasdaq displayed a healthier trend with advancing issues surpassing decliners. In total, the S&P 500 recorded seven new 52-week highs and two lows, while the Nasdaq Composite saw 37 new highs and 32 new lows.
As the market reacts to these developments, traders are advised to stay alert for further updates on the inflation data, which could spark additional volatility in the coming days. The economic landscape is shifting rapidly, and the implications of these changes could resonate globally.
