U.S. equities rose on Monday, supported by renewed confidence that the Federal Reserve may deliver an interest rate cut in December, helping shift sentiment after weeks of pressure on technology shares.
At 09:35 ET (14:35 GMT), the Dow Jones Industrial Average gained 150 points, or 0.3%. The S&P 500 climbed 65 points, or 1%, while the tech-heavy Nasdaq Composite advanced 380 points, or 1.7%.
Markets have struggled throughout November. The S&P 500 is tracking a 3.5% monthly decline, the Nasdaq Composite is down 6.1%, and the Dow Jones Industrial Average has fallen 2.8% month-to-date.
Rate-cut hopes rebound
Concerns about an AI-driven valuation bubble have dominated recent weeks, prompting investors to take profits after an extended tech rally. But sentiment improved after New York Fed President John Williams voiced support for a December rate cut—an outlook that contrasts with more cautious remarks from other Fed officials, highlighting a division within the central bank.
Federal Reserve Governor Christopher Waller echoed the call on Monday, saying he supports a cut next month, noting that economic data has shown little change since the Fed’s last meeting.
Market pricing for a December 25-basis-point cut has increased sharply, with expectations rising to roughly 69%, up from 44% a week earlier, according to the CME FedWatch Tool.
A slate of delayed U.S. economic data due this week could further influence the Fed’s decision. Producer price inflation, retail sales and September industrial production are scheduled for release on Tuesday, followed by third-quarter GDP on Wednesday. Signs of slowing economic or labor-market momentum could bolster the case for easing.
However, the Fed is expected to head into its December meeting with limited visibility, as the crucial November payrolls report—which will include delayed October figures—will not be released until after the year’s final policy meeting.
Agilent kicks off shortened earnings week
With Thursday’s Thanksgiving holiday reducing market activity, investors will focus on a lighter earnings calendar. Agilent Technologies reports Monday after the close, with attention on how the life sciences firm is managing subdued order volumes seen over the past two years. Demand for its tools and services used in drug development has shown resilience.
Elsewhere, Novo Nordisk shares slipped after the company reported disappointing results from its Alzheimer’s clinical trials. Rival Biogen rallied, with Jefferies analysts noting that Novo Nordisk’s setback may ease competitive pressure and potentially boost sales of Biogen’s Alzheimer’s therapy Leqembi.
Oil edges higher as investors track Ukraine–Russia peace efforts
Energy markets were also in focus as investors monitored developments in negotiations over a potential Ukraine–Russia peace agreement.
The U.S. and Ukraine were expected to continue talks on revisions to an initial proposal put forward by U.S. President Donald Trump, which some critics argue is overly favorable to Russia. Trump had earlier urged Ukraine to sign the deal by Thanksgiving, though U.S. Secretary of State Marco Rubio suggested the timeline could be flexible.
Brent crude futures inched up to $61.95 a barrel, while West Texas Intermediate gained 0.5% to $58.10. Both benchmarks fell around 3% last week, their lowest closes since October 21, amid concerns that a peace deal could pave the way for increased Russian crude flows into the global market.
