Wall Street Soars Amid Hopes of Fed Rate Cut

Wall Street stocks rallied on Monday, driven by hopes of a Federal Reserve interest rate cut in December. Economic reports indicating inflation and labor market trends sparked optimism, despite tech valuation concerns. Major indexes posted solid gains, bolstered by global market forecasts and ongoing holiday shopping season expectations.

Wall Street witnessed a robust rally on Monday, continuing the positive momentum established on Friday. The surge was fueled by heightened expectations that the U.S. Federal Reserve will slash its Fed funds rate in December, allowing investors to overlook fears surrounding inflated valuations in the tech sector.

Recent economic data, delayed due to a prolonged government shutdown, suggested labor market fragility and persistent inflation. This bolstered investor confidence in the likelihood of the Fed implementing its third and final rate cut of 2025 during December's monetary meeting.

Despite divergent views among Federal Reserve policymakers, market indicators suggest an 85% probability of a rate cut. As the U.S. moves into the holiday season, attention shifts to consumer spending, a critical economic driver, amid concerns of layoffs and lagging surveys. Nonetheless, the National Retail Federation anticipates holiday sales exceeding $1 trillion.

(With inputs from agencies.)