The S&P 500 Index ($SPX) (SPY) is up +0.22%, the Dow Jones Industrials Index ($DOWI) (DIA) is up +0.61%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.39%. December E-mini S&P futures (ESZ25) are up +0.25%, and December E-mini Nasdaq futures (NQZ25) are up +0.31%.
US stocks are slightly higher ahead of Wednesday's results of the 2-day FOMC meeting, which begins today. The markets are discounting a 98% chance of a -25 bp rate cut at this week's FOMC meeting. Assuming the Fed proceeds with this week's -25 bp rate cut, the markets are then discounting a 94% chance of another -25 bp rate cut at the next FOMC meeting on December 10. The markets are discounting an overall 115 bp rate cut by the end of 2026 to 2.95% from the current effective federal funds rate of 4.10%.
