US stocks tipped higher on Monday after bitcoin (BTC-USD) rose to a fresh record, as investors geared up for the Federal Reserve’s final policy decision of the year later in the week.
The Nasdaq Composite (^IXIC) moved up roughly 0.5%. The S&P 500 (^GSPC) gained 0.3%, while the Dow Jones Industrial Average (^DJI) hugged the flatline, on the heels of a losing week for those major gauges.
Meanwhile, software company MicroStrategy’s (MSTR) stock popped over 4% on news the bitcoin buyer is joining the Nasdaq 100 (^NDX). Bitcoin itself surged to an all-time high above $106,000 as hopes for a crypto-friendly Trump administration continued to fly high, before easing back to around $104,000.
Markets are taking their foot off the gas as the final Federal Reserve meeting of the year approaches. Its interest-rate decision on Wednesday is already in high focus as Wall Street watches for a catalyst to revive this year’s stellar stock rally.
Investors see a final 2024 rate cut as a sure thing, with 97% of traders currently pricing in a 25 basis point move. The bigger question now is whether the Fed is ready to scale back on its “dot plot” that laid out four more small cuts in 2025, given persistently sticky inflation and potential Trump administration challenges.
This week also brings an update to the Personal Consumption Expenditures (PCE) index — the Fed’s preferred inflation gauge — and a reading on US retail sales in November for insights into consumer resilience.
The Fed’s decision headlines a busy week of central bank rate calls worldwide, with the Bank of Japan among those set to make policy announcements.
Elsewhere, China’s latest reading on retail sales fell short of forecasts, putting pressure on oil prices. Brent (BZ=F) slipped slightly to near $74 a barrel after rising almost 5% last week, while West Texas intermediate (CL=F) edged down below $71.
On the corporate front, Super Micro Computer Inc. (SMCI) shares were down 4%, recovering from deeper pre-market losses. The struggling server maker is set to be removed from the Nasdaq 100.
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