Stock markets are buoyed by the technology sector, as investors wait for signs on future Fed interest rate cuts and closely monitor political instability in France and South Korea.
On Wall Street they rise this Wednesday, driven by the technology sectorsetting the stage for new all-time highs, as investors waited to hear from Federal Reserve Chairman Jerome Powell to get clues about the next steps in interest rates.
The Dow Jones Industrial Average (^DJI) rises 0.6%, or more than 200 points, while the S&P 500 (^GSPC) advances 0.3%, within the framework of a new all-time closing high. The more tech-focused Nasdaq Composite (^IXIC) gains about 0.5%.
Salesforce (CRM) shares climbed early in the day after its quarterly revenue beat expectations, raising hopes that its artificial intelligence products will be successful. Shares of Okta (OKTA) and Marvell (MRVL) also rebound after strong earnings reports, setting a positive tone for the tech sector.
Expectation for Powell’s words
Anticipation is growing for Powell’s appearance in New York later, with Wall Street watching to see if growing optimism about a rate cut in December is justified. Fed officials have signaled their support for further easing as they prepare for their final meeting of the year.
The central bank is widely expected to cut rates at its Dec. 18 meeting. Operators estimate a probability of almost 74% of a 25 basis point cutcompared to about 66% a week ago, according to the CME FedWatch tool.
Jerome Powell.webp
A report on private payrolls showed that companies added 146,000 jobs in November, slightly below economists’ estimates, and a slowdown from the downwardly revised 184,000 jobs in the previous month. ADP data suggests the labor market is softening, but not by much. The report is one of several key economic releases this week, as Friday’s important monthly jobs report approaches.
Investors were also keeping an eye on political turbulence in France, after chaos in South Korea would drive down stocks there. French lawmakers will vote on a no-confidence motion that could topple the government. Meanwhile, South Korea’s president now faces impeachment after plunging the country into a political crisis by briefly declaring martial law.
Source: Ambito
