Stocks Extend Rebound Rally on Dovish Williams Remarks

Economic Indicators - The University of Michigan's US Nov 1-year inflation expectations were revised lower to 4.5% from 4.7% and the Nov 5-10 year inflation expectations were revised lower to 3.4% from 3.6% [2] - The US Nov consumer sentiment index was revised upward by +0.7 to 51.0, stronger than expectations of 50.6 [2] - The US Nov S&P manufacturing PMI fell -0.6 to 51.9, close to expectations of 52.0 [2] Stock Market Performance - US stock indexes were mixed early but extended gains in the afternoon, with the S&P 500 Index up by +1.38%, the Dow Jones up by +1.52%, and the Nasdaq 100 up by +1.14% [5] - Stock indexes initially moved higher due to comments from New York Fed President John Williams, which increased the chance of a Fed rate cut at the next FOMC meeting to 70% from 35% [3][7] Corporate Earnings - Q3 corporate earnings season is concluding, with 82% of reporting S&P 500 companies exceeding forecasts, leading to a +14.6% increase in earnings, more than doubling expectations of +7.2% y/y [8] - Home builders and building suppliers saw gains as the 10-year T-note yield fell to a 3-week low, with companies like DR Horton up more than +5% [14] Cryptocurrency Market - The price of Bitcoin fell by more than -2% to a 7.25-month low, continuing a sharp 6-week downtrend with prices down more than 35% from a record high last month [6] - Cryptocurrency-exposed stocks faced pressure, with notable declines in companies like Strategy down more than -6% and Galaxy Digital Holdings down more than -5% [16] International Markets - Overseas stock markets were lower, with the Euro Stoxx 50 down -0.95%, China's Shanghai Composite down -2.45%, and Japan's Nikkei Stock 225 down -2.40% [9][12]