Market Anticipation: The Fed's Interest Rate Decision Looms with Trump's Influence

The S&P 500 and Nasdaq are set to rise ahead of an expected interest rate decision from the Federal Reserve, driven by Donald Trump's victory. Investors are watching for signals on future monetary easing. The major indexes experienced significant gains, yet some stocks are facing pressure amid rising Treasury yields.

The S&P 500 and Nasdaq are poised for gains as the Federal Reserve's interest rate decision approaches, primarily buoyed by a shocking return victory for Donald Trump as U.S. president. Investors have largely factored in a 25-basis-point rate cut but remain vigilant for clues about future monetary easing trajectories.

This anticipation has fueled record highs for major indexes, notably as traders bank on Trump's anticipated tax cuts and relaxed regulatory stance. The Dow and S&P soared to their biggest daily rise since November 2022, with the Nasdaq enjoying its most substantial lift since February.

While some stocks have retracted gains in premarket trades, others like Qualcomm and Moderna saw noticeable increases. Meanwhile, the Treasury yield surge post-election offers challenges, as the Fed might pause rate cuts if inflation trends and economic strength persist—underscoring the political backdrop with Republicans eyeing congressional control.

(With inputs from agencies.)