Wall Street is bracing for a potential interest rate cut by the Federal Reserve this week, as investors await key economic data and updates on individual stocks. The Dow Jones Industrial Average has been on a seven-day losing streak, but futures rose slightly on Monday.
Tech shares led the gains, with Broadcom surging over 3% after reaching a $1 trillion market capitalization for the first time. MicroStrategy’s stock is also expected to move as it joins the Nasdaq 100 index. However, Super Micro Computer tumbled nearly 14% following reports of potential delisting from the exchange.
The Fed meeting on Tuesday and Wednesday has traders expecting a rate cut of 0.25 percentage points, with some speculating about a pause in January. Investors are also watching for updates on inflation, which appears to be “stickier” than expected.
As year-end approaches, analysts at Piper Sandler believe the equity markets remain constructive within their primary uptrends, with potential gains heading into mid-December. Softbank CEO Masayoshi Son is set to announce a $100 billion investment in the US over the next four years during his visit to President-elect Donald Trump’s residence.
European and Asian stocks opened mixed on Monday, with Hong Kong’s Hang Seng index leading losses in Asia-Pacific markets. The Nasdaq Composite leads the way in year-to-date gains, up over 32%.
Source: https://www.cnbc.com/2024/12/15/stock-futures-are-little-changed-as-wall-street-gears-up-for-potential-fed-rate-cut-this-week.html