- U.S. stocks rose on Monday as investors awaited another change in Fed interest rates.
- Investors are pricing in a nearly 30% chance the Fed could cut interest rates by March.
- Traders also have their eyes on Nvidia, which will publish a earnings report on Tuesday.
U.S. stocks rose on Monday as investors assessed the prospects for interest rates in 2024, starting the week of the short session on a positive note.
Traders have raised expectations that the Fed will cut interest rates early next year, thanks to inflation remaining at around below the expected growth rate of 3.2% per year in October. According to CME’s FedWatch tool, markets are now pricing in a 29% probability that the Fed will cut interest rates by 25 basis points by March, up from 28% on Friday and 10.5% a week ago.
“We are at a sweet spot in the market as investors now believe the Fed’s next rate change will be a cut rather than an increase,” FCA senior market analyst David Morrison said in a note on Monday.
Meanwhile, investors are paying attention to chipmaker Nvidia, which is scheduled to report third-quarter results on Tuesday. The company’s shares are among the best performers this year, up 244% since the start of 2023 as Wall Street remains enthusiastic about generative AI.
Here’s where the U.S. indexes stood shortly after the opening bell on Monday at 9:30 a.m.:
Here’s what else will happen today:
For commodities, bonds and cryptocurrencies:
- West Texas Intermediate crude rose 2.2% to $77.56 a barrel. Brent crude, the international benchmark, rose 2.22% to $82.38 a barrel.
- Gold fell 0.68% to $1,966.90 an ounce.
- The 10-year Treasury yield rose 2 basis points to 4.465%.
- Bitcoin rose 1.41% to $36,957.