The S&P 500 rose 0.3% in its eighth consecutive up session and stands within half a percentage point of its record high, while Nasdaq 100 futures were up 0.39%. The VIX volatility index has fallen 12.6% this month, signaling calmer markets. The CME FedWatch shows an 87% chance of a U.S. Federal Reserve interest-rate cut next week, with further cuts expected in 2026. The Fed has begun reserve management purchases of short-term T-bills to add liquidity. Planned 'Trump Accounts' and corporate tax incentives are expected to generate fresh investment demand and boost GDP and corporate spending in 2026.
"The S&P 500 index ticked up 0.3% yesterday, its eighth straight upward trading session. It is now less than half a percentage point away from its record high, and futures were pointing marginally up again this morning. Nasdaq 100 futures were even more optimistic, up 0.39% before the open in New York. The VIX "fear" index (which measures volatility) has sunk 12.6% this month, indicating that investors seem to have settled in for a calm, quiet, risk-on holiday season."
"Elsewhere, the Fed has begun a series of "reserve management purchases," a program in which the central bank will buy short-term T-bills-a move that will add more liquidity to markets generally. Banks, brokers and trading platforms are also lining up to handle 'Trump Accounts,' into which the U.S. government will deposit $1,000 for every child. The trust fund can be invested in low-cost stock index trackers-a new source of investment demand coming online in the back half of 2026."
Read at Fortune
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