Wall Street gained in early trading on Monday, driven by increased market optimism that the US Federal Reserve (Fed) may approve a cut to interest rates in December.
This sentiment was significantly bolstered after Federal Reserve Governor Christopher Waller told Fox Business that he is advocating for a rate reduction at the central bank’s forthcoming meeting next month.
Waller indicated his expectation that inflation — which he believes has been augmented by US President Donald Trump’s tariffs — will eventually recede. However, he expressed lingering concerns regarding the “still weak” state of the labor market.
He further commented that the concentration of recent hiring within the leisure and hospitality and health care sectors was “not a good sign,” suggesting a potential imbalance in the economy’s trajectory.
At the opening bell, the Dow Jones Industrial Average rose 106.5 points, or 0.23%, to 46,351.93. The S&P 500 rose 33.6 points, or 0.51%, to 6,636.54, while the Nasdaq Composite rose 209.1 points, or 0.94%, to 22,482.156.
This week’s economic calendar includes releases of delayed reports on retail sales and inflation pricing data.
Bullion Market
Gold prices surged on Monday on growing expectations of a Federal Reserve interest rate cut next month and a weaker US dollar.
As of 09:12 AM ET (1412 GMT), spot gold was up 0.4% at $4,081.52 per ounce. US gold futures for December delivery were flat at $4,079.30 per ounce.
Elsewhere, spot silver added 0.5% at $50.24 per ounce, platinum rose 1.1% to $1,528.01, while palladium rose 0.8% to $1,385.85.
