US stocks continued to climb on the back of positive economic data and expectations of further interest rate cuts from the Federal Reserve. The Nasdaq 100 index rose by 0.8%, while the S&P 500 was up by 0.6%, on track for an eight-week winning streak. Despite potential trouble signaled by derivatives contracts on the S&P 500, many believe any setbacks will be short-lived due to slowing inflation and rate-cut bets.
Citigroup Inc. has advised investors to buy into pullbacks, expecting volatility ahead with a potential Fed pivot. Meanwhile, the global bond rally took a pause as US two-year yields hovered around 4.35% and the rate on the US 10-year edged up to 3.90%.
In economic news, gross domestic product (GDP) was revised lower to a 4.9% annualized rise in the third quarter, while initial US unemployment insurance claims rose less than forecasted. Traders are betting on at least six quarter-point interest rate cuts from the Federal Reserve by the end of next year.
This week, investors will be keeping an eye on Nike Inc.’s earnings and UK GDP data, as these are among the key events that could have an impact on the markets. Oil prices retreated after three days of gains, although the threat of Houthi attacks on ships in important waterways tempered the decline.
The US dollar fell against all major currencies, according to the Bloomberg Dollar Spot Index. On the other hand, the euro, British pound, and Japanese yen strengthened against the US dollar. Bitcoin and Ether experienced slight gains, while 10-year Treasury yields advanced and German and British 10-year yields remained relatively unchanged. West Texas Intermediate crude oil and spot gold prices were mixed.
This news story was produced with the assistance of Bloomberg Automation.
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