Market Surge: Nasdaq at Record High Amid Rate Cut Speculation

The Nasdaq hit a record high and the S&P 500 rose as investors anticipate a Federal Reserve rate cut. With a 99.1% likelihood of a 25bps cut, the markets focus on Fed guidance. Growth stocks thrive, and cryptocurrencies rise, boosting optimism in the market landscape.

The Nasdaq reached an unprecedented high on Monday, with the S&P 500 also showing gains as investors analyzed the latest economic data. This comes as they await the Federal Reserve's final policy announcement of the year, which is slated for later in the week, to discern future interest rate directions.

The FedWatch Tool has almost entirely predicted a rate cut at the closing of the Fed's two-day policy meeting on Wednesday, with a 99.1% probability for a reduction of 25 basis points. Market strategist Sam Stovall suggests that the anticipated cut could be 'hawkish,' meaning rates may decrease, but with cautious guidance indicating limited cuts next year.

Amidst economic alerts and expectation, growth and technology stocks led with substantial gains, particularly in megacap stocks like Alphabet and Tesla. Cryptocurrencies made strides with Bitcoin surging, fueling investor optimism and contributing to a buoyant market environment prior to the Fed's decision.

(With inputs from agencies.)