Federal Reserve's Dovish Pivot Boosts Stock Market with Rate Cut Hopes
AI Summary1 min read
TL;DR
The Nasdaq 100 surged 2.6% on hopes for a December Fed rate cut, boosted by dovish comments from Fed officials. This signals potential for low inflation and strong stock returns ahead.
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The Nasdaq 100 had its best day in six months, with a 2.6% rally, driven by changing interest rate expectations. Hopes for a December fed funds rate cut increased, with the futures market raising its odds above 70%. The market rebounded, with Fed Governor Chris Waller and San Francisco Fed's Mary Daly supporting a rate cut, citing concerns for the labor market. The stock market is braced for another year of low inflation and strong returns.
