US stocks rose on Monday as investors looked ahead to the Fed’s next rate move. 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. FCA senior market analyst David Morrison said, “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.”
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:
In commodities, bonds, and crypto:
– 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.
– Gold slipped 0.68% to $1,966.90 per ounce.
– The 10-year Treasury yield rose 2 basis points to 4.465%.
– Bitcoin rallied 1.41% to $36,957.
Investors are pricing in a nearly 30% chance the Fed could cut rates by March, and it seems like the next rate change from the Fed will be a cut rather than a hike. All eyes are on the chipmaker Nvidia as it’s set to report its third-quarter earnings on Tuesday. The stock has been soaring and is among the best-performing this year. Meanwhile, oil prices rose, while gold slipped and Bitcoin rallied.
I have over 10 years of experience in the cryptocurrency industry and I have been on the list of the top authors on LinkedIn for the past 5 years.