"The rarely wrong CME FedWatch futures index currently ranks the chance of a cut to 3.5% at 85%. The data fuelling investors' confidence that the Fed is about to deliver a new round of cheaper money (a move generally good for stocks), was summed up by Goldman Sachs in a note to clients this morning titled, "Weaker Job Growth and Lower Inflation.""
"Nvidia is down nearly 6% this month on fears that AI is a bubble. HSBC published a brutal research note earlier this week arguing that OpenAI-one of Nvidia's most important customers-will need another $207 billion in funding to survive through 2030. Strategy, Michael Saylor's Bitcoin treasury company, is down 40% this month as the collapse in the price of cryptocurrency severely challenges his business model. Saylor's company is now worth less than the Bitcoin it holds, according to the Financial Times."
S&P 500 futures were flat while the index closed up 0.69% yesterday, marking a fourth straight daily gain and sitting about 1% below its all-time high. Asian and European markets were flat or up, and India's Nifty 50 hit a record high. Market optimism centers on macro data suggesting the Federal Reserve may cut rates in December, with the CME FedWatch showing an 85% chance of a cut to 3.5% and UBS predicting multiple cuts over six months. Stocks rose despite notable weakness in Nvidia and a steep decline in Michael Saylor's Bitcoin treasury company.
Read at Fortune
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