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US stocks rose on Monday as investors looked ahead at the Fed’s next rate move.
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Investors are pricing in a nearly 30% chance the Fed could cut rates by March.
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Traders also have their eye on Nvidia, which will report earnings on Tuesday.
US stocks rose on Monday as investors assessed the outlook for interest rates into 2024, kicking off the short trading week on a positive note.
Traders have raised their expectations for the Fed to cut rates sometime early next year, thanks to inflation running at a below-expected 3.2% yearly pace in October. Markets are now pricing in a 29% chance the Fed could trim interest rates 25 basis points by March, up from 28% on Friday and 10.5% a week ago, according to the CME FedWatch tool.
“We’re in a market ‘sweet spot’ as investors are now convinced that the next rate change from the Fed will be a cut rather than a hike,” FCA senior market analyst David Morrison said in a note on Monday.
Meanwhile, investors have their eye on the chipmaker Nvidia, which is set to report third-quarter earnings on Tuesday. The stock has been among the best-performing this year, having soared 244% since the start of 2023 as Wall Street remains enthusiastic over generative AI.
Here’s where US indexes stood shortly after the 9:30 a.m. opening bell on Monday:
Here’s what else is going on today:
In commodities, bonds, and crypto:
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West Texas Intermediate crude oil rose 2.2% to $77.56 a barrel. Brent crude, the international benchmark, climbed 2.22% to $82.38 a barrel.
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Gold slipped 0.68% to $1,966.90 per ounce.
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The 10-year Treasury yield rose 2 basis points to 4.465%.
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Bitcoin rallied 1.41% to $36,957.
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