investors Await Rate Decisions from Federal Reserve and Seven Central Banks

Barry Adams
16 Dec, 2024
New York City

Stocks advanced in early trading, and investors awaited rate decisions from eight central banks around the world. 

The Federal Reserve is scheduled to announce its rate decisions, and investors are anticipating a rate cut of 25 basis points, lowering rates for the third time this year.

The Bank of England is likely to lower its key policy rates for the second time in a row, but the Bank of Japan may hold off its rate increase until its first meeting in 2025. 

In addition, central banks of Sweden, Norway, Thailand, Indonesia, and the Philippines are set to release their rate decisions later this week. 

Closer to home, investors are looking forward to the release of U.S. housing starts and completions, building permits, and existing home sales.

New home sales are struggling amid affordability issues and elevated mortgage rates, and existing home sales in November are likely to confirm low inventory of available homes for sale and new record high median and average home prices. 

In the year-to-Friday's close, the S&P 500 index has advanced 26.8%, the Nasdaq Composite gained 32.7%, the Dow Jones Industrial Average jumped 16.2%, and the Russell 2000 index increased 16.6%. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.6% to 6,074.25, the Nasdaq Composite rose 0.6% to 20,073.25, and the Russell 2000 index rose by 0.1% to 2,384.48. 

The yield on 2-year Treasury notes edged higher to 4.18%, 10-year Treasury notes inched up to 4.30%, and 30-year Treasury bonds increased to 4.52%.

WTI crude oil decreased $0.66 to $70.62 a barrel, and natural gas prices edged down 11 cents to $3.16 a thermal unit.

Gold decreased by $12.68 to $2,659.98 an ounce, and silver rose by $0.20 to $30.67. 

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher by 0.02 to 106.97.

 

U.S. Stock Movers 

Nasdaq announced changes to its 100 index stocks effective next Monday. 

Illumina, Super Micro Computer, and Moderna will be replaced by MicroStrategy, Palantir Technologies, and Axon Enterprise. 

The changes will be reflected prior to market opening on December 23. 

Broadcom jumped 3.5% to $232.60 and extended the previous week's sharp gains amid optimism about the company's artificial intelligence segment revenue growth. 

Super Micro Computer plunged 11.5% to $32.15 following a Bloomberg News report that the computer server company is likely to retain investment bank Evercore to raise additional capital through the sale of equity and debt.