BREAKING: Wall Street opened with significant swings today, as Bitcoin plunged below $81,000 before recovering slightly to $82,907 by 10:50 AM New York time. This volatility comes after comments from John Williams, president of the Federal Reserve Bank of New York, who indicated a potential path for lower interest rates in the near term.
Authorities report that Bitcoin has dropped 7.6% in a single morning, signaling widespread concern among investors. Meanwhile, shares of Nvidia fell an additional 3.5%, now down almost 18% from its record high in late October.
The market is reacting to a surge in expectations for a Federal Reserve rate cut at the December policy meeting, now pegged at 73.3%, up from just 39.1% yesterday. This marks a significant shift, especially given the 98.1% probability a month ago.
Analysts, including Strategas Securities’ Don Rissmiller, emphasize that the Fed’s recent meeting minutes reveal a divided sentiment. While some members wish to maintain current rates, lingering uncertainties around the US labor market could sway decisions. “Standing still in a perilous position also risks causing an accident,” Rissmiller cautioned.
Today’s fluctuations come as the US markets prepare for a shortened week, with the Thanksgiving holiday on November 27. Investors are awaiting critical data releases, including September retail sales and the Fed’s Beige Book ahead of the holiday.
In positive news, early flash PMI data shows US business activity growth accelerated for the second consecutive month in November. The headline S&P Global US PMI Composite Output Index rose to 54.8, the highest reading since July, reflecting a significant increase in new business activity.
Williams’ remarks have prompted analysts like Krishna Guha of Evercore ISI to adjust their expectations for a rate cut, suggesting that “it would be professional malpractice” for him to signal a cut without Jerome Powell’s endorsement. Guha interprets Williams’ comments as a sign that Powell is inclined towards a cut, especially as upcoming labor market reports are predicted to show weakness.
Market highlights indicate a mixed bag on Wall Street, with the Dow up 0.5% and the S&P slightly up 0.1%, while the Nasdaq is down 0.3%. The VIX index rose to 27.24, indicating increased market volatility.
In commodity markets, gold dipped 0.3% to $4,064.95 an ounce, while Brent oil fell 1.6% to $62.36 a barrel. The Australian dollar also saw a slight decline to US 64.36¢.
Looking ahead, key economic releases are scheduled for next week, including Australia’s monthly CPI on Wednesday and the UK’s Autumn Budget, which is expected to introduce tax hikes.
As this story develops, market participants are urged to stay alert for updates that could affect their portfolios. Share this vital information to keep others informed of the rapidly changing landscape!
