Stock market today: S&P 500, Nasdaq, Dow rise as investors start countdown to Fed decision
Published On Dec 16, 2024, 11:23 AM
U.S. stocks rose on December 16, 2024, with the S&P 500 up by 0.3%, the Nasdaq by 0.5%, and the Dow slightly gaining. The market's movement is attributed to a strong performance in Bitcoin, which hit a record price of over $106,000, along with investor anticipation for the Federal Reserve's imminent interest rate decision. Most traders expect a 25 basis point cut in rates, with the Fed also expected to discuss its future rate trajectory amidst ongoing inflation concerns. MicroStrategy shares increased by 4% due to its inclusion in the Nasdaq 100 as it boosts its Bitcoin holdings. Conversely, Super Micro Computer's stock fell significantly, nearing a removal from the Nasdaq 100 due to compliance issues.
Stock Forecasts
MSTR
Positive
The market sentiment appears positive as investors are optimistic about the Federal Reserve's decision to cut interest rates, which typically fosters a favorable investment environment. Additionally, cryptocurrency and technology stocks are experiencing gains, suggesting investor confidence in these growth sectors. The anticipation of MicroStrategy's continued ascent based on its Bitcoin investments supports a bullish outlook.
SMCI
Negative
Super Micro's significant drop amidst compliance issues indicates investor concern and a potential further decline in stock value until financial stability is restored. Removal from the Nasdaq 100 can lead to decreased investor interest and liquidity issues, supporting a negative sentiment around this stock.
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