Two National Guard members shot near White House
Investing.com - The market tenor is being driven by increased confidence in a Federal Reserve rate cut and measured optimism about AI-related spending, according to Roth. This sentiment is reflected in the S&P 500 ETF (SPY), which currently trades at $659.03, up from its previous close of $652.53.
The firm notes that there is now a 69% probability of a 25 basis point rate cut at the Fed policy meeting concluding December 10. Roth raises questions about whether equity benchmarks can advance on prospects of a single future rate cut and if such advances might face resistance after next month’s Fed Day. According to InvestingPro, SPY has shown strong resilience with a 14.45% price return over the past six months, despite its current P/E ratio of 16.49 suggesting modest valuation levels.
In overseas markets, E-Mini futures reopened Sunday evening up 34.50 points (0.52%) at 6654.75 and traded relatively flat until 4:00 AM ET when they followed the Stoxx 600 lower. By 6:45 AM ET, E-Mini futures were trading at 6638.00, up 17.75 points and 0.27% above Friday’s close. This relatively stable movement aligns with one of SPY’s InvestingPro Tips highlighting that the stock generally trades with low price volatility, with a beta of 1.01 over the past five years.
Trading patterns in Asia showed mixed signals regarding the risk curve, while European patterns were also mixed for equities and commodities. The U.S. dollar showed mixed performance against other major currencies.
In international developments, U.S. and Ukrainian officials reported progress Sunday in efforts to end the war with Russia after talks in Geneva, while Israel killed Hezbollah’s top military official in an airstrike on a southern suburb of Beirut, according to the Israeli military.
In other recent news, Morgan Stanley has adjusted its forecast regarding the Federal Reserve’s interest rate decisions, no longer anticipating a rate cut in December. This change follows stronger-than-expected employment data, with a notable increase in payrolls by 119,000, suggesting stabilization in the labor market. Meanwhile, ING expects the Federal Reserve to cut interest rates at its upcoming meeting, followed by another reduction in December, citing lower-than-expected tariff impacts as a contributing factor. Similarly, Wells Fargo anticipates a 25 basis point rate cut at the Federal Open Market Committee meeting on October 29, with no major changes expected in the policy statement language.
Goldman Sachs has addressed concerns about the sustainability of artificial intelligence investment levels, emphasizing that AI applications are improving productivity and require significant computational power. Additionally, President Trump commented on the trade tensions with China, highlighting the complex relationship and occasional challenges in interactions with President Xi. These developments reflect ongoing economic adjustments and international relations dynamics that investors are closely monitoring.
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