Overview
- Fed Governor Christopher Waller and San Francisco Fed President Mary Daly signaled support for a quarter-point cut next month, building on New York Fed chief John Williams’ recent dovish remarks, as FedWatch odds climbed to roughly 70%–85%.
- U.S. indexes jumped with the Nasdaq up 2.7% for its biggest daily gain since May 12, led by a more than 6% surge in Alphabet that helped lift communication services.
- Treasury yields eased with the 10-year near 4.03%–4.05% as rate-cut expectations firmed, while the dollar slipped against major peers and risk appetite improved.
- The resumption of government data releases puts September retail sales and producer prices in focus Tuesday after the shutdown backlog, with investors gauging consumer strength into the holiday period.
- Despite the rebound, investors flagged stretched AI-driven valuations and tracked Ukraine-Russia talks for potential energy supply effects that could sway oil prices.