Markets are widely expecting the Federal Reserve to deliver a rate cut
Volatility is gripping Wall Street this morning, with futures on the Nasdaq-100 Index (NDX) pointed lower despite the Nasdaq Composite (IXIC) yesterday nabbing a record high. Dow Jones Industrial Average (DJIA) and S&P 500 Index (SPX) futures are lower as well, the former sporting a steep triple-digit deficit as the blue-chip index looks to extend its worst losing streak since 2018.
The Federal Open Market Committee’s (FOMC) meeting kicks off today, with the CME Group's Fed Watch Tool predicting a 95% chance of a quarter-point interest rate cut on Wednesday. Elsewhere, retail sales for November rose 0.7%, past the 0.5% estimates --an encouraging sign heading into the final leg of the holiday shopping season.
Continue reading for more on today's market, including:
- Senior Vice President of Research Todd Salamone digs into mixed sentiment ahead of the Fed's rate decision.
- Super Micro Computer stock facing a perfect storm.
- Plus, Pfizer's strong outlook; drug trial boosts TEVA; and NVDA in correction territory.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 2 million call contracts and 1 million put contracts exchanged on Monday. The single-session equity put/call ratio fell to 0.51 and the 21-day moving average slipped to 0.61.
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The shares of
Pfizer Inc (NYSE:PFE) are up 2.7% in electronic trading, after the
pharmaceutical company's 2025 profit outlook beat estimates. Pfizer also noted Covid-19 vaccine and drug sales for next year should be in line with 2024. PFE is down 12.3% this year heading into today.
- Teva Pharmaceutical Industries Ltd (NYSE:TEVA) stock is up 18.1% before the open, after the company drug with Sanofi (SNY) met the main goal of a mid-stage trial of being an effective treatment for Crohn's disease and ulcerative colitis. The medication was tested in patients with inflammatory bowel disease. TEVA is up more than 58% in 2024.
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Nvidia Corp (NASDAQ:NVDA) stock is down 1.8% ahead of the bell, looking to extend a three-day losing streak as rival
Broadcom (AVGO) takes the
chip sector spotlight. Shares yesterday slipped into correction territory, but still boast a 166.5% in 2024.
- Slew of economic data due before and after the Federal Reserve's interest rate decision.
European Markets Struggle Amid Political Uncertainty
Markets in Asia moved lower today, as investors await this week’s U.S. Fed update and digest economic news out of China. The Chinese government decided to raise the region’s budget deficit to 4% of gross domestic product (GDP) for next calendar year. China’s Shanghai Composite fell 0.7%, Hong Kong’s Hang Seng dropped 0.5%, Japan’s Nikkei shed 0.2%, and South Korea’s Kospi backpedaled 1.3%.
Political uncertainty has stocks in Europe moving mostly lower. Germany’s Chancellor Olaf Scholz is making room for a snap election, after expectedly losing the confidence vote in the country’s Bundestag. The country also reported Ifo Business Climate Index data that dropped to 84.7 points in December to a more than four-year low. Pay growth in the U.K. rose 5.2%, a higher-than-expected lift for the three months ending in October. At last check, London’s FTSE 100 is down 0.5%, France’s CAC 40 is flat, and Germany’s DAX is down 0.2%.