Ahead of the Fed's decision, the U.S. market experiences 'super calm'.
Data shows that both the VIX, a gauge of market panic, and the MOVE Index, which tracks expected volatility in the bond market, have fallen to low levels, with significant unwinding of tail-risk hedges. However, analysts warn that this calm is relatively fragile: policy divisions have emerged within the Federal Reserve, potentially leading to split votes; hawkish rate cuts or worsening employment could quickly trigger a new wave of volatility.
Morgan Stanley also joins the December rate cut prediction camp: dovish remarks from the Fed's top brass are key.
① Morgan Stanley predicts that the Federal Reserve will cut interest rates by 25 basis points at the conclusion of its policy meeting on December 9-10; ② Previously, Morgan Stanley withdrew this forecast due to a robust September U.S. employment report, but its analysts noted that the withdrawal was premature; ③ Morgan Stanley expects the Federal Reserve to cut interest rates by 25 basis points next week, followed by another 25-basis-point cut in January and April of next year.
U.S. Stocks Close | Major indices edged higher, with the Nasdaq Composite posting a four-day winning streak; Storage-related stocks gained momentum, as Micron Technology and Western Digital surged over 4%; SoftBank Group rose as much as 50% during talks t
Traders exercised caution ahead of the Federal Reserve's interest rate decision next week, with the three major U.S. stock indexes closing higher on Friday amid thin trading volumes. After experiencing significant volatility earlier in the week, U.S. equities saw a strong rebound in technology stocks and a basket of 'most-shorted stocks' in the second half of the week, driving the Nasdaq Composite to finish higher on a weekly basis. Meanwhile, U.S. Treasuries posted their worst weekly performance since June. AI application software stocks generally rose, with Rubrik surging over 22% post-earnings, while Adobe, Salesforce, and Reddit climbed more than 5%, and Palantir increased by over 2%. The storage concept regained momentum, as SanDisk jumped over 7%, and Micron Technology, Seagate Technology, and Western Digital advanced more than 4%. Quantum computing, cryptocurrency mining companies, and cryptocurrency-related concepts underperformed.
U.S. Equity ETF Tracker | Spot silver hit a new high again, with the 2x Long Silver ETF rising nearly 5%; a $1.5 billion stock offering plan was launched, and the 2x Short OKLO ETF surged nearly 12%; quantum computing concepts performed weakly, with the 2
All three major U.S. stock indexes closed slightly higher, with the Dow Jones Industrial Average up 0.22%, the Nasdaq Composite rising 0.31%, and the S&P 500 Index gaining 0.19%. Most large-cap technology stocks advanced, led by Broadcom, which surged over 2%, while Google and Meta both climbed more than 1%. Meanwhile, Apple and NVIDIA saw declines of less than 1%.
Top 20 Transactions | A $720 billion deal to acquire a century-old Hollywood studio sends WBD up over 6%, while Netflix falls nearly 3% against the trend; storage concept rebounds with Micron Technology rising nearly 5%; strategic realignment gains market
NVIDIA, the top stock by trading volume on the US market on Friday, closed down 0.53% with a turnover of $26.069 billion. Earlier this week, NVIDIA's CFO Colette Kress emphasized that the majority of large model vendors are still indirect customers of NVIDIA, accessing NVIDIA’s products through CSPs (large cloud service providers). For quite some time, over 50% of NVIDIA's quarterly revenue has come from large CSPs. Hyperscale cloud service providers purchase computing resources for internal use or to transition towards accelerated computing.
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