Monday saw a positive finish for stocks, extending their winning streak into a third consecutive week, fueled by optimism surrounding a potential slowdown in US interest-rate hikes. The S&P 500 (^GSPC) closed with a 0.7% gain, the Dow Jones Industrial Average (^DJI) rose over 0.5%, or approximately 200 points, and the Nasdaq Composite (^IXIC) surged over 1% to conclude the first day of the abbreviated trading week.
The market has sustained its upward momentum as indications of moderating inflation have led investors to speculate that the Federal Reserve might be concluding its rate hikes. Attention has shifted to the possibility of a rate cut, with traders factoring in a 30% likelihood of this occurring as early as March.
The release of minutes from the Fed’s recent meeting on Tuesday could contribute to the ongoing discussion about the timing of a rate cut. However, with limited economic events on the horizon and the Thanksgiving holiday closing markets on Thursday, trading activity may remain subdued.
Investor focus also turns to Nvidia’s financial results, scheduled for release on Tuesday. In the wake of the chipmaker’s previous earnings report, which prompted a widespread surge in stock prices amidst the excitement surrounding artificial intelligence (AI), Nvidia (NVDA) achieved a record high on Monday, with shares rising over 2%.
Microsoft (MSFT) also reached an all-time high following the news of Sam Altman’s departure from OpenAI, causing ripples in Wall Street. After a weekend of negotiations, Altman and co-founder Greg Brockman have joined Microsoft to spearhead a new advanced AI research team, as confirmed by Microsoft CEO Satya Nadella.