根据芝商所（CME Group）的美联储观察工具，交易员预计美联储周三降息25个基点的可能性为95%。On the evening of the 17th Beijing time, the market is awaiting the last monetary policy decision of the year from the Federal Reserve. Retail sales in the USA in November exceeded expectations.
On Tuesday, the three major indexes in the USA collectively weakened. $S&P 500 Index (.SPX.US)$ Down 0.46%, $Nasdaq Composite Index (.IXIC.US)$ Down 0.55%, $Dow Jones Industrial Average (.DJI.US)$ Down 0.53%.
Traders are waiting for the Federal Reserve's interest rate decision. The Federal Reserve will hold a two-day monetary policy meeting on Tuesday and Wednesday (December 17-18) Eastern Time, which will be the last policy meeting of the year.
According to the Federal Reserve Watch tool from CME Group, traders expect a 95% chance that the Federal Reserve will cut rates by 25 basis points on Wednesday.
Investors will also closely watch the remainder of the meeting and the press conference held by Federal Reserve Chairman Jerome Powell afterwards to further determine future policy direction.
The market expects a rate cut of 25 basis points this week, along with a further reduction of 45 basis points in 2025, equivalent to one 25 basis point reduction, with about an 80% probability of a second cut. The money market shows an 80% chance that the Federal Reserve will cut rates three times next year, whereas at the beginning of this month, the market had a lower expectation for a fourth cut.
US stocks have performed strongly this year, with the three major indices hitting new highs. As the end of 2024 approaches, investors are also watching the prospect of US stocks continuing to rise towards the year-end.
On Tuesday, economic data showed that US retail sales in November rose 0.7% from the previous month, versus an estimate of 0.6%. Retail sales excluding Autos rose 0.2% in November from the previous month, versus an estimate of 0.4%. The range of estimates from 65 economists surveyed was -0.1% to 1%.
Retail sales in November rose to $724.6 billion. Retail sales excluding Car Dealers, building materials, and gas stations rose 0.2% in November from the previous month. The retail sales 'control group' in November rose 0.4% from the previous month.
The retail sales 'control group' excludes data from food services, Car Dealers, building materials, and gas stations. Sales at Car Dealers rose by $8.5 billion year-on-year to $129.2 billion.
Focus on individual stocks
The performance of technology giants is mixed, $Tesla (TSLA.US)$ up over 3%, $Alphabet-C (GOOG.US)$ up nearly 2%, $Apple (AAPL.US)$ slightly rising, with stock prices hitting new highs. $Broadcom (AVGO.US)$ Dropped over 5%, $NVIDIA (NVDA.US)$ Dropped nearly 3%.
Quantum Computing concept stocks surged across the board, $Quantum Computing (QUBT.US)$ Increased nearly 30%, closing up over 65% yesterday; $D-Wave Quantum (QBTS.US)$ Increased by nearly 16%, $Rigetti Computing (RGTI.US)$ Increased by nearly 11%, $Quantum (QMCO.US)$ Increased by over 9%.
$Tesla (TSLA.US)$ Increased by over 3%, continues to make new highs, Wedbush Analyst Dan Ives has significantly raised the Target Price to $515, which is the highest level on Wall Street.
$Pfizer (PFE.US)$ Surged over 4%, with an expected adjusted EPS of 2.8 to 3 dollars next year, and the median in the Range is better than the Analyst's expectation of 2.86 dollars.
$Teva Pharmaceutical Industries (TEVA.US)$ Soared nearly 20%, $Sanofi (SNY.US)$ Increased by nearly 5%, with both parties reaching a major goal regarding bowel disease medications.
Editor/Somer
