Wall Street is preparing to open higher ahead of earnings reports from major tech companies and the Federal Reserve (Fed) meeting. Markets are optimistic with expectations that the Fed will announce a 25 basis point interest rate cut.
Record Levels and Technology Rally
On Tuesday, Nvidia‘s announcement that it will build seven supercomputers for the US Department of Energy and Microsoft‘s new agreement with OpenAI propelled Wall Street to historic highs.
In Asia, Japanese and South Korean stock markets also hit records, while in Europe, STOXX 600 fell by 0.2%, FTSE 100 rose 0.6%.
Trump-China Meeting Offers Hope
US President Donald Trump spoke optimistically about reducing tariffs with China during his visit to South Korea.
Trump’s meeting with Chinese President Xi Jinping on Thursday could ease concerns about the trade war.Fed Decision Awaited
Investors are focused on the Fed’s messages after the interest rate cut. The market is pricing in the possibility of a new rate cut in December. This expectation is keeping the US 10-year Treasury yield at 3.99%, while gold is trading around $4,016 and Brent crude around $64.78. Experts emphasize that concrete results from the Trump-Xi meeting are necessary for the current rally to continue. Otherwise, risk appetite may weaken in the short term. Experts emphasize that concrete results from the Trump-Xi meeting are necessary for the current rally to continue. Otherwise, risk appetite may weaken in the short term.
