Stock indexes are up today, with the S&P 500, Dow Jones, and Nasdaq all showing gains. December E-mini S&P and Nasdaq futures are also up. Short covering emerged after New York Fed President John Williams hinted at a possible Fed rate cut in the near term, boosting the chance of a rate cut at the next FOMC meeting to 68%.

Tech stocks and Bitcoin are under pressure, with Bitcoin hitting a 7.25-month low. Concerns about high valuations in tech stocks and doubts about AI spending persist. The S&P 500 broke below key moving averages. Dovish comments from New York Fed President John Williams and Boston Fed President Susan Collins supported stocks and bonds.

US economic reports, delayed from earlier, are set to be released. The markets are pricing in a 68% chance of a rate cut at the next FOMC meeting. Q3 earnings season is ending strong, with 82% of S&P 500 companies beating forecasts. Overseas markets are lower, with Euro Stoxx 50 and China’s Shanghai Composite hitting lows.

Interest rates are on the move, with T-notes rallying on Fed rate cut expectations. European government bond yields are lower. Economic data shows contraction in Eurozone manufacturing and weakness in UK retail sales. ECB Vice President sees the Eurozone economy performing better than expected. Swaps predict a low chance of an ECB rate cut.

US stock movers include home builders rising on lower T-note yields and energy companies falling with crude prices. Azenta and Gap are up on strong earnings, while Veeva Systems and Bath & Body Works are down. Copart and T-Mobile US are also down. Earnings reports for various companies are scheduled for today.

Read more at Nasdaq: Stocks Rebound as Fed’s Wiliams Sees Room for a Rate Cut