Beat the street: Will the USD rate-cut cheer persist into the new year or turn into a hangover?
US stocks indicated higher as investors hold on to hopes of a soft landing for the US and rate cuts early in 2024. However, are traders getting ahead of themselves?
After the opening bell, brace for S&P Global Composite Flash PMI data. Nio ADRs rise on news that their Firefly is headed to Europe. Plus, Costco’s results tops estimates.
(AI Video Summary)
Discussing current interest rate news
In today's episode of Beat the street, host Angeline Ong talks about how interest rates are being cut and how that can affect the economy in the future. She also mentions that Nio ADRs are doing well and that Firefly will be launching in Europe next year.
The retail industry is doing better than expected, especially because people are buying more affordable groceries. The stock markets like the Dow Jones, S&P 500, and US Tech 100 are all going up. This is because the Federal Reserve is talking about cutting interest rates in the future, and the central banks in Europe are staying the same. People are also waiting for the global PMI data for December to see how the US economy is doing.
Exciting news from Nio and Costco
There is hope that the US economy will have a smooth landing next year, which means the Federal Reserve will be able to cut interest rates. Money markets are suggesting that rate cuts may happen in March and May 2024. There's also news about Nio, an electric vehicle maker, planning to bring its Firefly brand to Europe in 2024. This could make electric vehicles more affordable compared to traditional cars. Costco is also reporting better sales than expected because people are buying cheaper things.
Price of gold increases
The price of gold is going up because of what the Federal Reserve is saying about interest rates. If gold breaks through a certain point, it could go past $2,050 per ounce and reach previous highs. If it doesn't break through, there's still support at around $2,010 to $2,007 per ounce.
There's a chance that the Dow could reach a new record high when the markets open, thanks to the changes in interest rates by the Federal Reserve.
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