Traders are pricing in about a 66% chance that the Fed will cut rates by 25 basis points in March, according to CME Group’s FedWatch tool.
The Wall Street’s main stock indices They operate upwards this Tuesday, taking advantage of the strong gains in recent weekswhile investors continued to bet on a shift in monetary policy of the Federal Reserve next year.
He Dow Jones Industrial Average rises 206.98 points, or 0.6%, to 37,513 units, while the S&P 500 gains 18.61 points, or 0.4%, to 4,759.17 units. He Nasdaq Composite adds 56.68 points, or 0.4%, to 14,961.88 units.
He Dow Jones hits new all-time highwhile the index Nasdaq 100 hits record high.
S&P 500 nears all-time high
The benchmark S&P 500 is trading less than 1% from its all-time closing highas operators are betting on an aggressive schedule of cuts in interest rates for 2024after the president of the Fed, Jerome Powellsaid at last week’s central bank meeting that its historic monetary tightening is probably over.
Despite attempts by monetary authorities to moderate optimism since the meeting, Traders are pricing in about a 66% chance the Fed will cut rates by 25 basis points in March.according to the CME Group’s FedWatch tool, and declines 143 basis points by December 2024.
“The feeling that things with Federal Reserve are doing well and that they are going to be expansionary next year, with no real issues about further hikes or concerns about it, has given the markets the last boost they needed,” he said Phil Blancatoexecutive president of Ladenburg Thalmann Asset Management In New York.
Lower rates could boost property purchases
A report of the Department of Commerce showed that the Construction of single-family homes soared in November and could continue to gain momentum as it is Lower mortgage rates likely to attract buyers again potential to the real estate market.
Investors are waiting for others economic data this week, like final GDP reading for the third quarter and the monthly personal consumption expenditure index (PCE), the Federal Reserve’s Preferred Inflation Gauge.
The low trading volume is expected to affect market movements on the eve of the Christmas parties and New Year.
Source: Ambito
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