Stocks Supported by Strength in Tech and Fed Rate Cut Expectations

Economic Indicators - Markets are anticipating a 70% chance of a -25 basis point rate cut at the upcoming FOMC meeting on December 9-10 [1] - September retail sales are projected to increase by +0.4% month-over-month, with a +0.3% increase excluding autos [2] - September PPI is expected to remain unchanged at +2.6% year-over-year, while core PPI is anticipated to ease to +2.7% from +2.8% in August [2] - The Conference Board's November consumer confidence index is expected to decline by 1.2 points to 93.4 [2] - October pending home sales are expected to rise by +0.1% month-over-month [2] - Weekly initial unemployment claims are expected to increase by 6,000 to 226,000 [2] Stock Market Performance - US stock indexes are rising, driven by strength in technology stocks and increasing expectations for a December Fed interest rate cut [5] - The S&P 500 Index is up by +0.61%, the Dow Jones by +0.18%, and the Nasdaq 100 by +1.51% [6] - Semiconductor and AI-infrastructure stocks are rebounding, with Broadcom up more than +6% and Micron Technology up more than +5% [11][12] Corporate Earnings - Q3 earnings season is nearing completion, with 83% of S&P 500 companies exceeding forecasts, marking the best quarter since 2021 [7] - Q3 earnings rose by +14.6%, significantly surpassing expectations of +7.2% year-over-year [7] International Markets - Overseas stock markets are also higher, with the Euro Stoxx 50 up +0.23% and China's Shanghai Composite recovering from a six-week low [8] Interest Rates and Bonds - The 10-year T-note yield is down to 4.042%, influenced by Fed Governor Christopher Waller's advocacy for a December rate cut [9] - European government bond yields are declining, with the 10-year German bund yield down to 2.696% [10]