Stock Market Live December 8: S&P 500 (SPY) Running Ahead of the Fed
Quick Read
-
Markets are pricing in an 87% chance of a rate cut, according to CME FedWatch.
-
there are hopes that we’ll see more rate cuts after Challenger, Gray & Christmas reported that job cuts in November moved further ahead of one million for the year.
-
Carvana will be added to the S&P 500 on December 22.
The analyst who called NVIDIA in 2010 just named his top 10 stocks and Carvana wasn't one of them. Get them here FREE.
Live Updates
Markets Pumping Brakes Ahead of Federal Reserve Meeting
After starting the day off well, markets decided to pump the brakes ahead of the Federal Reserve’s interest rate decision this week. Weighing on stocks is the 10-year Treasury yield, which continues to push higher despite the likelihood that the Fed cuts this week. All as investors fear inflationary risks heading into 2026 and if the Fed will continue to cut.
Nvidia’s Data Center Opportunity is Significant, Says Bernstein
Analysts at Bernstein just reiterated an outperform rating on Nvidia, citing a significant opportunity with data centers.
After all, artificial intelligence will continue to create massive demand for data centers.
Right now, according to MIT Technology Review, there are about 3,000 data centers across the U.S. Plus, according to a report from McKinsey, $5.2 trillion in AI infrastructure investments will be needed by 2030.
McKinsey’s analysis also “suggests that demand for AI-ready data center capacity will rise at an average rate of 33 percent a year between 2023 and 2030 (reflecting a trend that is already underway),” as reported by BOMA International.
We also have to consider that AI demand isn’t slowing, which increases the need for data centers.
Forecasts now place AI’s value between $1.7 and $3.5 trillion by the early 2030s, with the most aggressive estimates topping $7 trillion by 2035. And judging by the surge in corporate investment, the market is moving toward the high end of those projections.
Carvana Will Be Added to the S&P 500
Later this month, Carvana (NYSE: CVNA | CVNA Price Prediction) will be added to the S&P 500 on December 22.
As a result, analysts at Bank of America reiterated a buy rating on the stock with a price target of $485 a share. After all, inclusion into the S&P 500 typically forces index funds and ETFs to buy shares of newly added stocks.
S&P 500 futures are up another 11 points this morning. The SPDR S&P 500 ETF (SPY) is up about $1.50 a share. The Dow is up another 23 points, as the Nasdaq tacks on 81 points.
Driving markets higher are hopes for another rate cut this week.
In fact, markets are pricing in an 87% chance of a rate cut, according to CME FedWatch.
While we won’t see payroll numbers until after the Federal Reserve’s meeting on December 10, there are hopes that we’ll see more rate cuts after Challenger, Gray & Christmas reported that job cuts in November moved further ahead of one million for the year. We also just got US PCE inflation data for September, which showed a lower-than-expected read of 2.8%.
Carvana Will Be Added to the S&P 500
Later this month, Carvana (NYSE: CVNA) will be added to the S&P 500 on December 22. As a result, analysts at Bank of America reiterated a buy rating with a price target of $485 a share. After all, inclusion into the S&P 500 typically forces index funds and ETFs to buy shares of newly added stocks.
Other stocks being added to the S&P 500 include Comfort Systems (FIX), Mohawk Industries (MHK), Pinterest (PINS), Dycom Industries (DY), and Marriott Vacations (VAC).
This New Year Resolution Trade is Exploding Higher
Over the last few weeks, many of us have stuffed ourselves full of turkey. Nowadays, we’re at holiday and family parties packing on even more weight.
Then, when all is said and done, we promise next year will be different.
We promise to diet and exercise. In fact, around this time of year, about 90% of us, according to Johns Hopkins Medicine, make a resolution to lose weight, diet, and exercise more.
Unfortunately, as many of us will also do, is push our resolutions to another time.
Others will join Weight Watchers, or even Medifast. Or even join a gym.
Look at Planet Fitness (NYSE: PLNT) for example, which we mentioned on November 7 as it traded at around $104 a share. Today, it’s up to $111 and continues its history of exploding higher around this time of year. In fact, we saw it take off in late 2020, in late 2021, in late 2022, and again in 2023, 2024, and again now.
All thanks in large part to the New Year’s Resolutions.
Ian Cooper is a veteran market analyst and investment strategist with more than 20 years of experience covering stocks, commodities, and macro trends. Since 1999, he has helped investors identify market opportunities using a blend of technical analysis, fundamental research, and market sentiment.
He is the creator of the ADD News Flow Strategy, which focuses on trading market reactions to major news events and investor psychology. Cooper was also among the analysts who warned about the 2008 financial crisis and major financial institution collapses ahead of the broader market.
Before joining 247 Wall St., Cooper wrote extensively for InvestorPlace and other financial publications, covering market trends, trading strategies, and investment opportunities.
© 24/7 Wall St.
Top Gaining Stocks
Top Losing Stocks