Jamie Spencer
US stocks tipped higher on Monday to fresh record highs and investors braced for the Federal Reserve’s final policy decision of the year later this week.
Nasdaq Composite on Track for a Record Close
The Nasdaq Composite (^IXIC) climbed nearly 1%, poised for a record close with Alphabet (GOOGL, GOOG) and Tesla (TSLA) hitting new all-time highs. The S&P 500 (^GSPC) rose 0.4%, while the Dow Jones Industrial Average (^DJI) hovered around the flatline after a losing week for major indexes.
Federal Reserve Decision in Focus
Markets eased slightly as anticipation builds for the Federal Reserve’s last meeting of 2024. Investors are nearly unanimous in expecting a 25-basis-point rate cut, with 97% of traders pricing it in. The key question remains whether the Fed will revise its “dot plot,” which currently projects four additional small cuts in 2025, amid stubborn inflation and looming uncertainties from the Trump administration.
Key Economic Data Ahead
This week, the Federal Reserve will also monitor updates to the Personal Consumption Expenditures (PCE) index — its preferred measure of inflation — and November’s US retail sales data, which will provide insights into consumer spending and resilience.
Weak Retail Sales in China Pressures Oil Prices
China’s latest retail sales figures missed expectations, exerting downward pressure on oil prices. Brent crude (BZ=F) eased slightly to near $74 a barrel, while West Texas Intermediate (CL=F) dipped below $71, following last week’s nearly 5% gain in oil prices.
Corporate Updates: Super Micro Computer Declines
Shares of Super Micro Computer Inc. (SMCI) fell over 6% as the struggling server maker faces removal from the Nasdaq 100.
