Wall Street Stocks Jump to New Record Ahead of Key Fed Meeting

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Key Takeaways

Stocks on Wall Street notch a new all-time high on Monday as November trading sets in
The US Federal Reserve holds a key press conference on Wednesday; high volatility expected

What’s on Focus in the Markets?

Stocks on Wall Street continued on their upward trajectory for another day on Monday. Moreover, the first trading day of the month resulted in new all-time highs for all three major US stock indexes.

In detail, the S&P500 gained about 8 points to close at a fresh record. In addition, the tech-heavy Nasdaq Composite gained about 97 points. Finally, the Dow Jones Industrial Average briefly topped 36,000 points for the first time in history. During the session, however, the 30-stock blue-chip index retreated a bit and finished at 35,913, up about 94 points.

It’s worth noting that all three major indexes finished with back-to-back record highs. Investors on Wall Street have been increasingly optimistic to fuel the stock market rally. This is largely a result of a better-than-expected earnings season. On that note, about 80% of all S&P500 companies that have reported so far have topped analyst estimates.

What’s the Latest News on Bitcoin?

Bitcoin, the largest coin in the cryptocurrency market, is moving higher early Tuesday. After a relatively uneventful start of the week, the orange coin has gained over 2% before the US session has begun.

Against that backdrop, crypto market enthusiasts have high hopes for the month of November. A historically strong period for bitcoin, the month is now called “Moonvember” by crypto backers. Furthermore, digital asset traders expect to see a new top this month, surpassing the current all-time high of $67,000 per bitcoin.

Statistically, in the relatively short history of bitcoin, November has resulted in gains for the token 10 out of 12 times. In other words, bitcoin has failed to produce a profit in only two November periods during its 13-year history. Whether the 13th November will match the consensus, the market is yet to see.

What’s New Around the Markets?

Investors across various asset classes are now shifting their attention to the forthcoming Federal Reserve conference. Slated to begin today, the regular policy meeting will conclude with a speech by Chairman Jerome Powell on Wednesday. In it, he is expected to lay out a timeline with a starting point for tapering or reducing, asset purchases. In more detail, the US central bank has been buying assets worth $120 billion per month. The extraordinary support was an aggressive measure to provide stability to the financial markets at the onset of the pandemic.

Now that the market has greatly rebounded, the Fed is preparing to tighten its ultra-loose monetary policy. During Mr. Powell’s speech on Wednesday, elevated volatility is to be expected.

What’s Next for Traders and Investors?

One particular stock investor will be watching today is Tesla. The electric-vehicle maker surged to a new all-time high on Monday, surpassing $1,200 a share. That said, Elon Musk received a windfall of $24 billion in a single day, according to the Bloomberg Billionaires Index.

With this in mind, Tesla shares today are expected to trade in a highly volatile environment.

Today’s Economic Calendar (EST times)

05:45 pm, NZD, Employment Change (QoQ)
06:00 pm, NZD, RBNZ Gov Orr Speaks