Markets Rally For Second Day As Odds Of December Rate Cut Rise

Benzinga

Global stocks climbed for a second day as expectations for a December Fed rate cut surged, easing pressure on high AI valuations and pulling Treasury yields lower. Fed officials signaled support for easing, and markets now price an 85% chance of a cut. U.S. indexes rallied sharply while oil prices rose.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:02Global stocks rose for a second day as expectations for a December Fed rate cut

00:06eased concerns about high AI valuations and pushed longer-dated Treasury yields lower,

00:10according to Reuters. New York Fed President John Williams and Fed Governor Christopher Waller

00:14signaled support for lower rates. And San Francisco Fed President Mary Daly said she favors a cut

00:19next month due to weakening labor conditions. Markets now see an 85.1% chance of a 25-basis

00:25rate cut in December, nearly doubling from 42.4% a week earlier.

00:30Bill & Sachs chief economist Jan Hatsias projected a December cut, followed by two more in March

00:35and June 2026. U.S. indexes close higher, with the S&P 500 up 1.55% and the Nasdaq up 2.69%,

00:43its strongest daily gain since May. Treasury yields fell with a 10-year at 4.036%.

00:49While oil prices climbed, its U.S. crude settled at $58.84 and Brent at $63.37.

00:56For all things money, visit Benzinga.com.

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