European Inflation was at 2.4% in Nov vs 2.9% in Oct, underlying price grow also down. Goldman Sachs economists are betting on April rate cut from European Central Bank. On the other hand, US Federal Reserve rate cut odd is now 44% in May 2024.
US Treasury ETF TLT is up a strong 1.61% and 10 year Treasury yield drops to 4.220%.
Lower interest rate expectation and year end seasonal strength have help the US stock market today with small cap Russell 2000 up 2.5%, Dow up 0.68%, S&P 500 up 0.5% and Nasdaq up 0.43%. Investors seem to take profits on tech stocks and rotating capital to other sectors. Strong sectors are regional banks (KRE +4.79%), retails (XRT +3.19%), transportations (IYT +2.56%), basic materials (IYM +1.6%) and gold (GLD +1.54%). US stock market rally is broadening which is bullish.
US stock market trend is up. Major market indexes looks ready to challenge their all time highs. All time high levels for Dow, S&P 500 and Nasdaq Composte are 36952, 4818 and 16212 respectively.
SEC just confirmed it met with Grayscale for the second time yesterday to discuss converting the Grayscale Trust into a #Bitcoin ETF. SEC also met with BlackRock on Wednesday regarding their Bitcoin ETF application. Looks like Bitcoin ETF approvals are inevitable. Bitcoin rallies strongly today and broke above $38000 level solidly and next target is $50000.
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