Will the Federal Reserve pause interest rate cuts in 2025? Investment banks say strong economic growth is key to the US stock market! Four types of Stocks may benefit.
In the early hours of December 19 (this Thursday), the Federal Reserve will announce its decision from the December interest rate meeting. Some Analysts believe that further rate cuts by the Federal Reserve could have negative consequences.
U.S. stock market early session | The three major Indexes weakened slightly, while Tesla, Google, and Apple rose against the trend, with stock prices reaching all-time highs; Quantum Concept stocks continue to soar, with QUBT rising nearly 30%.
The market is waiting for the USA Federal Reserve's last monetary policy decision of the year. Retail sales in the USA in November exceeded expectations.
Wall Street has an unprecedented consensus on the outlook for the U.S. stock market in 2025! And this is exactly where the risk lies.
Every investor seems to think that the USA is the best place to invest, but the global narrative is likely to change next year.
"The 'terror data' greatly exceeded expectations, investors should pay attention to this concern."
In November, retail sales in the USA exceeded expectations with a month-on-month increase of 0.7%, but spending in restaurants and bars, the only service category in the retail report, declined for the first time since March.
US Stock Market Outlook | Higher than expected! USA retail sales data hits a new high since September, with the declines in the three major futures contracts narrowing; Tesla continues to rise nearly 2% in pre-market trading and is set to hit a new histor
The Quantum Computing concept stocks are seeing an expanded pre-market increase, with Quantum rising over 17%; Pfizer is up nearly 3% in pre-market trading! Revenue is expected to reach 61 billion to 64 billion dollars by 2025.
The scene from eight years ago is being recreated! Will Powell act the same way this time as last time?
Although there is no desire to mention Trump at all, the Federal Reserve may still consider the policy calls proposed by this presidential candidate in this week's meeting.
"Scary data" strikes tonight! Retail sales may indicate strong Consumer activity, is the "Christmas market" expected to start strongly?
Analysts at Bank of America stated that the second half of December is usually the second strongest period for U.S. stocks in the year, and this week's FOMC meeting may be the last hurdle before the Christmas rally.
Daily Options Tracking | Broadcom Options Volume has surged for two consecutive days! One Call order made a nearly 10-fold profit; Micron Calls soared to 78%, with large investors spending tens of millions of dollars on L to hedge against downside risks.
Impacting a market cap of 2 trillion dollars! Tesla's overnight close surged over 6% to reach a new high, with implied volatility rising to 80.49%. Options volume reached 3.05 million contracts; for this Friday's expiration, the call option with a strike price of 500 dollars had the highest volume at 0.116 million contracts, with an open interest of 0.044 million contracts.
The TMT Trade is booming, financial net Buy is the highest, hedge funds are aggressively acquiring Consumer stocks... Goldman Sachs summarizes the five major Trade themes of the U.S. stock market at the end of the year.
Goldman Sachs traders indicated that last week there was a significant increase in activity in the TMT Sector on the Goldman Sachs trading desk, with multiple seven-figure large trades occurring. Finance is the Sector with the highest net Buying, where Insurance, Consumer Finance, and Capital Markets are the sub-sectors with the highest net Buying. However, Industrial stocks faced some pressure due to market concerns over the long-term high interest rates in the USA, widespread tariffs, and a strong dollar.
A comprehensive understanding: What did Trump say at his first press conference after winning the election?
① The USA president-elect Donald Trump held his first press conference after winning on Monday (December 16); ② he said that during his first term, everyone was against him, while in this term, everyone wants to be his friend; ③ Trump spoke about foreign issues, stating that he will facilitate an end to the Russia-Ukraine war and promote an agreement between Israel and Hamas.
DWS: Forecasts the Federal Reserve will reduce interest rates three times before the end of next year.
DWS has lowered its interest rate cut forecast from 5 times to 3 times before the end of 2025 (including one cut in December).
Barclays: It is expected that the Federal Reserve may gradually slow the pace of interest rate cuts after the December meeting.
Barclays expects the FOMC to lower the federal funds rate target range by 25 basis points to 4.25-4.50% at its December meeting, bringing the rate closer to the neutral level deemed appropriate by policymakers.
It's related to the Federal Reserve! The growth in productivity in the USA may continue.
Policymakers hold an open attitude towards the sustained growth of productivity, which may lead the Federal Reserve to reconsider its outlook on the economy and interest rate cuts.
Futu Morning Report | Goldman Sachs expects the Fed to "skip" interest rate cuts in January! Powell's speech may impact the market; Tesla surged over 6%, boosting the Nasdaq, and Quantum Concept stocks collectively exploded.
China's central bank has recently announced to appropriately reduce the reserve requirement ratio and interest rates. The State Council Meeting proposed to develop and strengthen long-term capital and patient capital; Bitcoin has surpassed 107,700 dollars, setting a new historical high, Ethereum has returned to 4,000 dollars, and most cryptocurrency concept stocks have risen.
Top economists: The Federal Reserve is facing a choice, and Powell may hint at pausing interest rate cuts in January next year!
Renowned economists indicate that in order to cope with inevitable decision points, the Federal Reserve must change its policy-making approach.
Stock Market Today: Stocks Are Mixed Ahead of the Fed
U.S. stock market morning | The three major Indexes are collectively rising, Broadcom surged nearly 9%, Tesla and Google both hit historical highs; Cryptos Concept stocks are strongly rising, MARA climbed nearly 7%, Coinbase rose nearly 4%.
On the evening of the 16th in Beijing time, several central banks will hold meetings this week and a large amount of important economic data will be released. Investors will focus on the Federal Reserve's monetary policy meeting in December.
CEOs in the USA are lobbying to "abandon tariffs," but Trump is not listening to their advice.
With less than two months left until the inauguration, Trump's tariff hammer has 'intensified,' and Company Executives are actively lobbying, hoping for a softening of aggressive policies. However, insiders indicate that Trump is 'not listening to advice,' and it's best for companies to accept the reality that the tariff pledges will soon be implemented.
Broadcom rises over 8% again, with a cumulative increase of over 35% in two days! Which company will become the next member of the "trillion Market Cap club"?
After Broadcom's market cap exceeded one trillion dollars, there are currently nine companies in the "trillion-dollar market cap club" in the U.S. stock market, namely Apple, Microsoft, NVIDIA, Amazon, Google, Meta, Tesla, Broadcom, and Taiwan Semiconductor.
U.S. Stock Outlook | Three major futures indexes rose collectively, with Tesla pre-market up nearly 1%, poised to set a historical high at the open; Goldman Sachs: The Federal Reserve will "skip" a rate cut in January, and may signal a slowdown in easing
Super Micro Computer fell nearly 14% before the market and was removed from the NASDAQ 100 Index component; Broadcom continues to rise 3% before the market, as Bank of America raised the Target Price to $250.