Trading Day: Reanimated About December Fed Cut

Market Confidence Rises on December Fed Rate Cut Speculation

By Alden Bentley

NEW YORK (Reuters) -Making sense of the forces driving global markets

By Alden Bentley, Editor in Charge, Americas Finance and Markets

Jamie is enjoying some well-deserved time off, but the Reuters markets team will still keep you up to date on what animated markets today: primarily strengthened confidence about a December Federal Reserve cut. I'd love to hear from you so please feel free to reach out at

Today's Key Market Moves

* On Wall Street the benchmark S&P 500 and tech-heavy Nasdaqwere up about 1.6% and 2.7%, respectively * U.S. Treasury yields fell * The dollar eased against the euro and rose vs the Japaneseyen * Crude oil rose 1.3% * Gold rose 1.4%

Today's Key Reads

Wall Street rallies on tech rebound, rising rate cut bets

Stocks jump, US yields dip as Fed rate cut bets rise

Wall Street slump could secure Fed rate cut

Deutsche Bank sees S&P 500 rising to 8,000 by end of 2026

Record US Black Friday crowds to find fewer bargains amid high prices

Reanimated about December Fed cut

Investors paraded back into U.S. stocks after last week's bull market reset, emboldened by the latest remarks by influential Federal Reserve officials. Fed Governor Christopher Waller on Monday told Fox Business that available data indicate labor conditions are weak enough to justify a quarter-point cut when the Federal Open Market Committee meets in two weeks, reinforcing dovish comments by New York Fed President John Williams that helped reverse last week's selloff on Friday.

Rate futures markets place the odds of a quarter-point cut on December 10 at 67%, up from less than even last week. The Magnificent Seven mega caps were all in recovery mode, overriding concerns that rattled sentiment about excessive valuations and debt financing of the artificial intelligence spending spree.

More delayed data trickles out on Tuesday with the Producer Prices Index and Retail Sales from September that did not get released during the government shutdown. Given the Thanksgiving holiday on Thursday, early stock and bond closes on Friday, and the proximity of December book closings, large swings either way should not come as a surprise. Black Friday's shopping deals will provide the first inkling of how retailers at least will fare going into year-end.

Market action was not broadly risk-on, however, with safe-haven gold and Treasuries also gaining, along with crude oil. The dollar index meanwhile slipped, although the greenback was solid against the beleaguered yen, after Takuji Aida, an adviser to Prime Minister Sanae Takaichi, said on Sunday that Japan can actively intervene in the currency market.

What could move markets tomorrow?

* US September Producer Prices * US September Retail Sales

Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Trading Day is also sent by email every weekday morning. Think your friend or colleague should know about us? Forward this newsletter to them. They can also sign up here.

(Reporting by Alden Bentley in New York; Editing by Bill Berkrot)