Stocks steady as focus turns to Fed rate cuts

The start of a holiday-shortened week saw Wall Street stocks taking a breather after three consecutive weeks of gains, buoyed by hopes of a slowdown in US interest-rate hikes.

Futures linked to the S&P 500 (^GSPC) and the Dow Jones Industrial Average (^DJI) remained largely unchanged, while those tied to the Nasdaq 100 (^NDX) edged up by around 0.2%.

The recent trend in stocks has been attributed to indications of subdued inflation, leading the market to believe that the Federal Reserve might halt its rate hikes. Now, attention has shifted to the possibility of a rate cut, with traders pegging a 30% chance of this happening as early as March.

Market watchers are eagerly awaiting the release of minutes from the Fed’s previous meeting on Tuesday, but with minimal economic news and the impending Thanksgiving holiday, trading activity is expected to be muted.

Investors will also be keeping a close watch on Nvidia’s financial results scheduled for release on Tuesday, following the company’s last earnings report, which sparked a widespread surge in stocks during the AI hype wave.

In the AI realm, Microsoft’s shares saw a nearly 2% rise in pre-market trading on Monday after the company, known for backing OpenAI, appointed Sam Altman to head a new AI research team. However, weekend attempts to reinstate Altman as the CEO of ChatGPT maker were unsuccessful, prompting the board to announce the appointment of former Twitch chief Emmett Shear as his replacement.

On the commodities front, oil prices climbed amidst speculation that Saudi Arabia and its allies might announce a further reduction in production at the upcoming OPEC+ meeting. Additionally, a decline in the dollar, which lowers expenses for holders of other currencies, was also seen as a factor contributing to the increase in oil prices. Both West Texas Intermediate crude (CL=F) and Brent crude (BZ=F) inched up by approximately 1.6%.

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Olivia Carter

Olivia Carter revs up excitement in the world of NASCAR. As a dedicated motorsports enthusiast, she covers race results, driver profiles, and the latest developments in the NASCAR world, keeping fans on the edge of their seats.