"At the moment, the S&P 500 is up about 42 points, pushing the SPDR S&P 500 ETF ( SPY) up about $4.33 a share. The Dow Jones is up 161. And the NASDAQ is up 235. All as stocks attempt to rally after the head of the New York Federal Reserve left the door open to a potential interest rate cut in December. In fact, it was Federal Reserve President John Williams who suggested that the central bank cut rates in December."
"He says the central bank can lower its key interest rate from here, as labor market weakness poses a bigger economic threat than higher inflation. Fueling cut momentum, "The deterioration we've seen in the labor market, I think, is enough justification for the Fed to cut in December," said Tom Porcelli, chief economist at Wells Fargo, as quoted by MarketWatch. After all, we did just see the unemployment rate jump to a four-year high of 4.4% for September."
Major U.S. stock indices gained, with the S&P 500 up about 42 points, the SPDR S&P 500 ETF rising roughly $4.33, the Dow up 161, and the NASDAQ up 235. Federal Reserve signals opened the door to a potential December rate cut after comments from the New York Fed and suggestions from Fed leadership. Labor-market weakness, including a rise in the unemployment rate to 4.4% in September, strengthened arguments for easing and pushed market-implied odds of a rate cut to about 75%. October retail sales and the Producer Price Index could shape expectations, while airline stocks recovered ahead of a busy Thanksgiving travel period.
Read at 24/7 Wall St.
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