Tech Drives Global Rally as Fed Cut Hopes Surge – US Market Wrap

Technology stocks powered global markets higher as traders began a data-packed week with renewed optimism that the Federal Reserve will lower interest rates in December.

The S&P 500 surged 1.5%, while the tech-heavy Nasdaq 100 gained more than 2% on Monday. While the former had its greatest day in six weeks, the latter increased the most since May.

Bitcoin reversed a previous slump. The US 10-year Treasury rate fell to 4.03%. Oil increased after bouncing between tiny gains and losses for the majority of the session as traders considered the possibility of a Ukraine-Russia peace deal.

Federal Reserve Governor Christopher Waller fuelled optimism on Monday by expressing support for a rate cut next month. In a separate interview on Monday, San Francisco Fed President Mary Daly expressed support for decreasing interest rates in December. On Friday, New York Fed President John Williams had a similar influence on the market by stating that a near-term rate cut is still possible. While the central bank’s December meeting is the next major milestone for markets, investors are depending on dated economic data due to delays imposed by the US government shutdown.

Money markets are putting in a roughly 70% chance of a Fed rate drop in December, after the odds shifted in recent weeks due to deepening splits among policymakers and the data blackout.