Nasdaq is up more than 1% on hopes of a Fed rate cut

Wall Street stocks rose in early trading Monday to open a shortened holiday week that includes several key U.S. economic data.
Gains extended Friday’s rebound on increased optimism that the U.S. Federal Reserve could cut interest rates next month.

The Dow Jones rose 119.52 points to 46,364.93 (0.26%), the S&P 500 rose 65.78 points to 6,668.77 (1.00%) and the Nasdaq rose 369.97 points to 22,643.06 (1.66%).Federal Reserve Governor Christopher Waller told Fox Business that he is calling for a rate cut at the upcoming December meeting of the U.S. central bank.

He expects inflation – supported by President Donald Trump’s tariffs – to eventually ease, but expressed concern about a “still weak” labor market.

He added that it was “not a good sign” that much of the workforce is concentrated in the leisure, hospitality and healthcare sectors.

This week’s calendar features retail sales data releases and inflation prices delayed by the U.S. government shutdown.

CFRA Research’s Sam Stovall expects light trading volume with markets closed for the Thanksgiving holiday on Thursday, followed by a half-session on Friday.

Stovall described the market’s trajectory as “a near-term recovery, with investors expected to reevaluate when they come back in earnest.”