Bond market gets more optimistic over a December rate cut

Treasury market rallies as December rate cut odds rise

Highlights

• Treasury market rallies as December rate cut odds rise

• The Atlanta Fed’s wage tracker is anything but sticky

• Financials and the Russell 2000 emerge as darlings as Semiconductors slump

• The latest Q3 GDP revision wasn’t consumption-friendly

Key Takeaways

Equity Markets Surge Ahead with Financials and Small Caps Leading

• Strong momentum in equity markets has powered the S&P 500 to its second straight year of 20%+ gains — a 1-in-10 event over the past century — just as strong seasonals are about to set in. Nvidia has started to stumble, mind you, but Financials and the Russell 2000 have emerged as darlings of late.