After a slump in recent weeks, optimism appears to be returning to trading floors as the likelihood of a third consecutive US interest rate cut increases, as a weakening labor market somewhat outweighs high inflation.
The prospect of lower interest rates pushed Wall Street higher for a second straight session, with the S&P 500 rising about 1.6% on Nov. 24. The Nasdaq jumped 2.7%, helped by a surge in large-cap stocks such as Alphabet, Meta and Amazon.
The rally continued in Asia, following a strong session earlier in the session. At the break, the Nikkei 225 index in Tokyo was up 0.4% to 48,815.27 points.
Speaking to Fox Business on November 24, Fed Governor Christopher Waller said that inflation is not his main concern and that the main concern now is the labor market. Therefore, he affirmed that he supports cutting interest rates at the upcoming meeting.
Waller's comments echo those of San Francisco Fed President Mary Daly, who told the Wall Street Journal that the risk of a spike in inflation has diminished because the impact of President Donald Trump's tariffs has been less than expected. New York Fed President John Williams also said last week that there is room for another rate cut at the December 9-10 policy meeting.
Analysts pointed out that the Fed's lack of a rebuttal to the comments suggests Chairman Jerome Powell supports the view and is preparing for another cut.
Traders now see a roughly 90% chance of a rate cut, up from around 35% last week.
In Vietnam, the VN-Index increased by 7.51 points, or 0.45%, to 1,675.49 points, while the HNX-Index decreased by 0.89 points, or 0.34%, to 260.33 points.
Market sentiment was also boosted after Trump hailed the US-China relationship as “extremely strong” after a phone call with Chinese President Xi Jinping. Trump also said he would visit China in April and Xi would visit Washington in late 2026.
Source: https://baotintuc.vn/thi-truong-tien-te/chung-khoan-chau-a-khoi-sac-truoc-ky-vong-fed-ha-lai-suat-20251125121652620.htm
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