Last Updated: 4:05 PM EST
Stock indices finished today’s trading session mixed. The S&P 500 (SPX) and the Dow Jones Industrial Average (DJIA) gained 0.1% and 0.69%, respectively. Meanwhile, the Nasdaq 100 (NDX) fell 0.05%.
Recently, Minneapolis Fed President Neel Kashkari said that the Fed may not need as many rate cuts as expected if the U.S. economy stays strong. His comments followed the Fed’s recent 25 basis point rate cut.
Kashkari pointed out that higher productivity in the economy might mean fewer rate cuts are needed if this trend continues. Indeed, he noted that the U.S. has been outperforming other countries when it comes to economic growth and cooling inflation.
Kashkari also discussed the recent jump in Treasury yields and suggested that it might be due to both Trump’s re-election and a stronger growth outlook. This is similar to Powell’s sentiment. In fact, he recently stated that he wasn’t too worried about the higher yields and explained that they reflect growth expectations, not inflation concerns.
First Published: 4:41 AM EST
U.S. stock futures are trending higher on Monday morning following the election week rally. Futures on the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were up 0.27%, 0.26%, and 0.22%, respectively, at 4:05 a.m. EST, November 11.
Last week saw Donald Trump’s second win at the U.S. presidential elections, pushing company stocks and indices higher to hit some of their record levels. In regular trading on Friday, the Dow Jones added 0.59%, crossing the 44,000 mark for the first time in history. The SPX rose 0.38%, while the Nasdaq Composite gained a meager 0.09%. For the week, the SPX ended up 4.66%, the Dow closed higher by 4.61%, and the Nasdaq advanced 5.74%.
Under Trump’s rule, investors expect to see encouraging domestic growth policies as well as potential tax cuts. One of the biggest beneficiaries of the Trump win was Tesla (TSLA), whose market cap surpassed the $1 trillion mark for the first time ever. CEO Elon Musk has been a big advocate of Trump’s candidacy, and his EV company is witnessing the fruits of his labor. Furthermore, the FOMC announced another 25-basis points cut in interest rates, boosting the ongoing rally.
Turning toward corporate earnings this week, investors await results from Monday.com (MNDY), Home Depot (HD), Marathon Petroleum (MARA), Occidental Petroleum (OXY), Shopify (SHOP), Walt Disney (DIS), JD.com (JD), and Alibaba (BABA), among others.
Additionally, some important economic events are expected to shape the stock market momentum this week. On Wednesday, traders will await the release of October’s Consumer Price Index (CPI) and CPI excluding Food and Energy (Core CPI). The Federal Reserve’s interest rate decisions hinge on the readings of this report, as it reveals the country’s inflation numbers.
Also, October’s Producer Price Index (PPI) will be released on Thursday. The Index measures the cost of producing consumer goods. October’s Retail Sales figure will be released on Friday, showing how consumers are spending on retail goods.
Meanwhile, the U.S. 10-year treasury yield was trending lower at the time of writing, floating near 4.306%. In contrast, the WTI crude oil futures trended higher, hovering near $70.47 per barrel as of the last check.
Elsewhere, European markets opened in the green today, following enthusiasm from Donald Trump’s victory and interest rate cuts by central banks worldwide.
Asia-Pacific Markets Traded Mixed on Monday
Asia-Pacific indices traded mixed today as China’s regulators announced disappointing stimulus measures for the economy. Beijing’s 10 trillion yuan stimulus package did little to encourage investors, as looming government debt pressurizes the world’s second-largest economy. Additionally, China’s inflation reading of 0.3% for October lagged expectations and dragged down Chinese stocks further.
Hong Kong’s Hang Seng index ended down 1.45%, while China’s Shanghai Composite and Shenzhen Component indices rose 0.51%, and 2.03%, respectively.
Also, Japan’s Nikkei rose 0.08%, while the Topix fell 0.09%, as of the last check.
Interested in more economic insights? Tune in to our LIVE webinar.
