Bitcoin record high/ Wall Street gains/ Fed meeting outlook/ Broadcom earnings/ U.S. Treasury yields/ NEW YORK/ J. Mansour/ Morning Edition/ U.S. stocks edged higher Monday, with the S&P 500 gaining 0.3% and bitcoin reaching a record $106,000. Investors are closely watching the Federal Reserve’s upcoming rate decision, which could influence economic trends into next year. Strong performances from companies like Broadcom and Honeywell offset Nvidia’s dip, contributing to a positive start for Wall Street.
Stock Market Update: Quick Looks
- Wall Street Gains: S&P 500 rose 0.3%, Nasdaq climbed 0.5%, and the Dow added 90 points.
- Bitcoin’s Surge: Bitcoin hit a record $106,000, driven by optimism for crypto-friendly policies under President-elect Trump.
- Fed Meeting Looms: Markets expect a third rate cut this year, with speculation about further cuts in 2025.
- Corporate Movers: Broadcom jumped 9.7% after strong earnings, while Honeywell rose 3% on plans for a potential aerospace spinoff.
- Treasury Yields Ease: The 10-year yield dipped slightly to 4.38%, reflecting tempered expectations.
Wall Street Rises as Bitcoin Hits Record Ahead of Fed Meeting
Deep Look
Wall Street Performance
U.S. stock indexes showed modest gains Monday, with the S&P 500 up 0.3% and the Nasdaq rising 0.5%. The Dow Jones Industrial Average added 90 points, or 0.2%. Investors appeared cautiously optimistic ahead of this week’s Federal Reserve meeting, which could set the tone for markets in 2025.
Bitcoin Breaks Records
Bitcoin soared to $106,000 before settling near $105,600, continuing its remarkable climb from $44,000 at the start of the year. Enthusiasm for cryptocurrencies has been fueled by expectations that President-elect Donald Trump will adopt policies favorable to digital assets.
MicroStrategy, which has heavily invested in bitcoin, saw its stock climb 2.8% as it prepares to join the Nasdaq 100 index.
Federal Reserve Decision in Focus
The Federal Reserve’s final meeting of the year is the week’s main market event. A third consecutive rate cut is widely expected as the Fed balances cooling inflation with concerns over a slowing job market.
Traders are speculating on two additional rate cuts in 2025. However, recent inflation data and Trump’s potential tariff policies have cast uncertainty on the Fed’s long-term trajectory.
Strong Corporate Earnings
Broadcom led the S&P 500 with a 9.7% gain, driven by robust earnings and a positive revenue forecast highlighting its AI offerings. Honeywell rose 3% after signaling plans to spin off or sell its aerospace business.
Conversely, Nvidia, a leader in AI chip production, saw its stock dip 1.9%, making it the biggest drag on the S&P 500 despite its massive market valuation exceeding $3 trillion.
Treasury Yields and Global Markets
Treasury yields eased, with the 10-year yield falling to 4.38% and the two-year yield dropping to 4.23%. Meanwhile, global markets saw mixed performance:
- European and Asian indexes mostly declined.
- Hong Kong’s Hang Seng fell 0.9%, and Shanghai’s index slipped 0.2% following underwhelming economic data from China.
- South Korea’s Kospi dropped 0.2% amid ongoing political turmoil as impeached President Yoon Suk Yeol faces potential removal from office.
