Investors now see a 68% chance that the Fed will cut rates another quarter point in December, according to the CME FedWatch tool. A week ago, before the presidential election, the odds were almost 80%.
Wall Street futures indicate that the post-election rally extends into this session, as investors prepare for new data on the US economy.
The futures of Dow Jones Industrial Average (YM=F) led the way higher, rising about 0.4%, while S&P 500 futures (ES=F) advanced 0.3%. Both indices come from their best week of the year, crowned by all-time highs. Contracts on the Nasdaq 100, with a high technological weight (NQ=F), add 0.3%.
Today, on Veterans Day in the USstock markets are open and pointing to further post-election gains, amid big moves in digital assets. Meanwhile, Bitcoin (BTC-USD) reached a new milestone, surpassing $82,000, as Donald Trump’s pro-crypto stance and a Congress with more cryptocurrency-friendly lawmakers generated excitement among investors.
Wall Street: what’s next
Wall Street awaits October consumer inflation data on Wednesday, which could indicate the direction of rates. Last week, Chairman Jerome Powell remained silent on the Fed’s expectations of Trump’s policies, which could maintain inflationary pressures.
Inflation in the United States
Crypto Alert
One concern is that Trump’s proposed tariffs could lead to higher inflation, forcing the Fed to scale back rate cuts. Minneapolis Fed President Neel Kashkari said Sunday that if other countries react with a “tit for tat,” policymakers will have to “wait and see.”
Traders now see a 68% chance that the Fed will cut rates another quarter point in December, according to the CME FedWatch tool. A week ago, before the presidential election, the odds were almost 80%.
On the corporate front, shares of Tesla (TSLA), another “Trump stock” hot spot, continued to rise, up nearly 7% in pre-market trading. Shares of the electric vehicle maker hit their highest close in more than two years on Friday, surpassing the $1 trillion market value, amid optimism about CEO Elon Musk’s relationship with the president-elect.
Source: Ambito
