N環球 
US stocks rally into fourth quarter as odds favor Fed holding in October, hiking in December
US equities rallied broadly on Friday as early Treasury yield declines spurred buying; odds favor the Fed holding in October and hiking in December, with FOMC minutes due Wednesday.
Why it matters
US stocks finished Friday broadly higher in a broad-based rally, helping revive investors' optimism heading into the fourth quarter, according to MarketWatch. The S&P 500 has averaged a gain of 3.9% in the fourth quarter since 1950, the strongest quarter of the year, and November has produced the most record closing highs of any month.
Full report
Treasury yields declined early on Friday, helping to usher in the rally for equities, though the move in yields had reversed by the closing bell. "Friday showed us that when yields go down, equities should soar," Jose Torres, senior economist at Interactive Brokers, told MarketWatch.
The VIX, Wall Street's unofficial "fear gauge," finished Friday at around 15.5, well below its long-term average of 19.4 — a sign that despite weakness beneath the surface, markets remained calm.
The odds currently favor the Federal Reserve holding steady for October but hiking rates in December, after the central bank restarted its hiking cycle in September — its first rate increase in over three years. A slew of Fed speakers is on tap for the week ahead, along with the minutes of September's FOMC meeting due on Wednesday, which could influence a jittery bond market.
Context: this is a market snapshot, not investment advice. Source: MarketWatch, Oct. 4.
💬 Comments
No comments yet. Be the first!