REFILE-LIVE MARKETS-Wall Street set to open Fed week higher with Tesla rally
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WALL STREET SET TO OPEN FED WEEK HIGHER WITH TESLA RALLY
Wall Street futures are pointing to a higher open on Monday, as investors geared up for the Federal Reserve's first interest rate cut this year.
Tesla shares TSLA.O were in the spotlight, jumping 8% in trading before the bell and looking to recoup most of their losses of 2025, after a filing showed CEO Elon Musk had amassed nearly $1 billion worth of the electric-vehicle maker's stock last week.
On the other hand, Nvidia shares NVDA.O fell about 1%, after China's antitrust watchdog accused the chip giant of violating competition laws based on a preliminary investigation.
The moves follow last week's record highs for U.S. stocks, with the CBOE volatility index .VIX hovering near its lowest level this year, as signs of a cooling labor market reinforced expectations for more rate cuts.
The Fed is widely expected to cut rates by 25 basis points on Wednesday, marking the first move this year and continuing the easing cycle that began with a hefty 50 bps cut on Sept. 18, 2024.
Monday's focus also includes a Senate vote on Stephen Miran, Trump’s nominee to the Fed board.
This week marks the one-year anniversary of the current easing cycle.
Since then, S&P 500 has jumped 17%, accompanied by gains for all sizes and styles, as well as eight of 11 sectors, according to CFRA Research's Chief Investment Strategist Sam Stovall.
Of the 154 sub-industries in the S&P 1500, 57% rose in the past 12 months, while 27% outpaced the broader market, Stovall said in a note.
Historically, the second year of easing cycles has seen the S&P 500 rise an average of 11%, with double-digit gains in five sectors—led by financials .SPSY, real estate .SPLRCR, and tech .SPLRCT. And on average, utilities .SPLRCU is the only sector that has tended to decline, he added.
Here's a premarket snapshot:
(Medha Singh)
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EARLIER ON LIVE MARKETS:
ARNINGS EXPECTATIONS ARE STILL TOO STINGY CLICK HERE
EARNINGS EXPECTATIONS ARE STILL TOO STINGY - CLICK HERE
WHY MORE INSURANCE M&A COULD BE COMING - CLICK HERE
EQUITY POSITIONING OVERWEIGHT, BUT SENTIMENT STILL SHAKY- CLICK HERE
FINANCIALS AND DEFENCE LIFT THE STOXX - CLICK HERE
BEFORE THE BELL: FRENCH STOCKS SHRUG OFF FITCH - CLICK HERE
IT'S ALL ABOUT CENTRAL BANKS THIS WEEK - CLICK HERE
US premarket snapshot
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