Asian Stocks Extend Gains on Fed Rate-Cut Bets: Markets Wrap

Wall Street concluded the trading session on a positive note as expectations for a Federal Reserve interest rate cut in December gained momentum. This optimism was reflected in the performance of major indices, particularly following a rebound in technology stocks after a period of volatility.

Investors are increasingly betting on a Federal Reserve interest rate cut in December, following a shift in sentiment that has emerged over the past week. This change is reflected in the surge of activity in Fed futures, indicating a strong belief that policymakers will act to lower borrowing costs during their upcoming meeting.

Apple has reported a record net income of $112 billion and quarterly revenue of $102.5 billion for its fiscal year, surpassing Wall Street expectations during its October 30 earnings call. This marks a significant achievement for the tech giant, reflecting strong demand for its products and services.

The Federal Reserve is facing significant internal divisions as it approaches its December meeting, where a decision on a potential interest rate cut for the third time this year is expected. Policymakers are split on how to address a weakening labor market while managing rising inflation, leading to uncertainty about the central bank's direction.

Treasury yields have decreased, with the 10-year yield approaching 4%, following weak labor market data and comments from Federal Reserve Governor Stephen Miran that have heightened expectations for an interest rate cut next month.

Katrina Dudley, Senior Investment Strategist at Franklin Templeton Public Markets, highlighted the prevailing skepticism in the markets and the challenges facing the Federal Reserve in potentially cutting interest rates in December. She discussed these issues during an interview with Bloomberg's Lisa Abramowicz and Dani Burger.

Fiona Boal, Global Head of Equities at S&P Dow Jones Indices, anticipates strong demand for non-US exposure as she discusses the upcoming Federal Reserve meeting and the implications for the German economy. Her insights were shared during an interview with Bloomberg's Guy Johnson and Kriti Gupta.

Palantir Technologies has seen significant insider selling, with CEO Alex Karp and other executives offloading over $200 million in shares, raising concerns among investors as the company's stock has more than tripled this year amid a surge in AI investments.