US Stock Optimism Grows Ahead of Fed Decision, PMIs Mixed – Europe Market Wrap

As traders braced themselves for a series of interest-rate announcements by major central banks that are coming later this week, US equities futures shrugged off negative results in other important markets. Bitcoin reached a new high.

Nasdaq 100 contracts increased 0.3%, indicating more gains after the index finished at a record high on Friday. MicroStrategy rose more than 6% in premarket trade, boosted by its impending inclusion in the tech-heavy index following the software maker’s transition into a leveraged gamble on Bitcoin. S&P 500 futures rose 0.2%.

Monday’s US stock performance contrasts with losses in Asia and Europe, as weaker-than-expected retail data in China dampened the mood. A downturn in the eurozone’s private sector also weighed on European markets.

An expected quarter-point rate cut from the Federal Reserve on Wednesday could provide additional support and extend US stock outperformance. The S&P 500 is up 27% so far in 2024, with strategists anticipating the surge to continue in expectation of President-elect Trump’s favourable economic policies and high earnings.

ECB’s President Lagarde: More rate cuts to come and the direction of travel is clear.