ByJJ Kinahan,
Senior Contributor.
Key Takeaways
Stocks rallied on Friday following encouraging comments out of the Federal Reserve. Despite the rally, equities ended the week lower with the S&P 500 and Dow Jones Industrial Average both falling 1%. The Russell 2000 fell 1.8%. But the big loser on the week was the Nasdaq Composite, which dropped 2.15% and is down 6% in November.
New York Fed President John Williams spoke on Friday and said he saw room for the Federal Reserve to reduce interest rates again soon. On Friday morning, the odds of a rate cut at the Federal Reserve Open Market Committee (FOMC) meeting in December were in the 30% range. In the wake of those comments and as of Monday morning, those probabilities are now nearly 74%. The increased chances held despite Federal Reserve President of Boston Susan Collins saying she didn't necessarily see the need for a cut in December. This sets up an interesting and unique situation for markets.
