Traders remain largely betting that the Fed will cut the main policy rate by at least 1.50 percentage points by the end of next year.
Wall Street It is coming off its eighth consecutive week of gains. Investors are encouraged by reports showing that inflation is declining even as the economy appears stronger than expected. Thus, the Federal Reserve is treading water trying to slow the economy enough through an aggressive policy of high interest rates to lower prices, but not enough to push the country into recession.
Traders remain largely betting that the Fed will cut the main policy rate by at least 1.50 percentage points by the end of next year, according to data from CME Group. The federal funds rate currently sits in a range of 5.25% to 5.50%, at its highest level in more than two decades.
Thus, the S&P 500 rises 0.3%. The benchmark is close to its all-time high set almost two years ago after its longest winning streak since 2017. The Dow Jones Industrial Average rises 0.3%. The Nasdaq Composite Index rose 0.5%. This way. Gains in technology stocks help drive the market and leading the way is the chip maker Nvidia which climbs 1.1%.
In other markets
Drugmaker Bristol Myers Squibb said Tuesday it will acquire RayzeBio in a $4.1 billion deal, just days after buying Karuna Therapeutics for $14 billion. Bristol Myers shares fell 1%, while RayzeBio doubled to $61.38close to the $62.50 that each share will reach upon acquisition.
Shanghai’s benchmark index led losses in Asia due to heavy selling in technology and computer chip-related stocks, as concerns about trade tensions with the United States and other Western countries were revived.
Several video game companies announced share buybacks to support prices after Chinese regulators issued interim guidelines on Friday that sent shares of gaming companies such as Tencent and Netease tumbling.. Hong Kong markets were closed on Tuesdayso the impact of an effort by Beijing on Monday to cushion the impact of the new rules by expressing support for the industry and announcing the approval of more than 100 games was unclear.
The Shanghai Composite Index fell 0.7%. In Shenzhen, where relatively more high-tech companies are listed, the A-share index lost 1.2%.
Source: Ambito
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