Stocks Supported by Strength in Tech and Fed Rate Cut Expectations

The markets are discounting a 70% chance of another -25 bp rate cut at the next FOMC meeting on December 9-10.The markets will look to this week’s economic news for direction. On Tuesday, Sep retail sales are expected to climb +0.4% m/m and +0.3% m/m ex-autos. Also, Sep PPI is expected to remain unchanged from Aug at +2.6% y/y, and Sep core PPI is expected to ease to +2.7% y/y from +2.8% y/y in Aug. In addition, The Conference Board’s Nov consumer confidence index is expected to fall by 1.2 points to 93.4. ...