New York Fed President John Williams signaled the Fed could approve another rate cut in December, saying policy remains 'modestly restrictive' and there is room to ease, which lifted S&P 500 futures +0.47%, Nasdaq-100 futures +0.37% and Dow futures +0.7% as traders rebuilt expectations for a third 2024 cut. The remarks helped pare losses in AI-linked names—Nvidia was flat after a volatile session and AMD turned positive—following a broad, week-long selloff driven by strong jobs data and profit-taking that left the S&P down 2.9%, the Dow nearly 3% and the Nasdaq 3.6%; breadth was weak (NYSE ~76% decliners and ~81% of volume down; Nasdaq >73% decliners and ~82% declining volume) with many new lows. The market’s short-term trajectory now hinges on incoming economic data and whether intraday lows hold; failure to stabilize would reinforce concerns that labor-market strength undermines the case for additional cuts and could prompt renewed risk-off behavior, particularly in high-valuation AI hardware and software stocks.
New York Fed President John Williams signaled the central bank could approve another rate cut in December, describing policy as “modestly restrictive” and leaving room to ease; his remarks lifted S&P 500 futures +0.47%, Nasdaq-100 futures +0.37% and Dow futures +0.7% as traders rebuilt expectations for a third 2024 cut and pared earlier losses in risk assets. The rally followed a sharp, week‑long selloff concentrated in AI-linked names: Nvidia was flat in premarket trade after swinging from a 5% intraday gain to a 3% loss on Thursday and has extended its monthly decline to more than 10%, while AMD turned positive. Breadth data show widespread liquidation rather than isolated profit‑taking: NYSE decliners comprised ~76% of issues with ~81% of volume down (new lows 174 vs highs 50), Nasdaq saw >73% decliners with declining volume ~82% and new lows 513 vs 125 highs, and major indices fell S&P -2.9%, Dow ~-3% and Nasdaq -3.6% for the week. The immediate market path is data dependent: the note highlights intraday support levels (S&P 6525.00, Nasdaq-100 23904.50, Dow 46566.87) and warns that a break below them would reinforce skepticism about near‑term Fed easing and likely trigger further risk‑off behavior, especially in high‑valuation AI hardware and software names.
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Overall Sentiment
mixed
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0.05
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