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America’s stock market closed with tremendous growth on Monday. The Dow Jones closed up 203 points or 0.44%, the S&P 500 jumped more than one and a half percent and the Nasdaq jumped 2.69%. This was the biggest one-day rise of Nasdaq since May 12. Let us tell you the reasons due to which there has been a strong rise in the American stock market.
There was a strong rise in America’s stock markets on Monday. An increase of 0.44% i.e. 202.86 points was recorded in DOW JONES. Nasdaq saw a rise of 2.69%. S&P 500 gained more than 1.5 percent. NASDAQ has seen the biggest intraday rise since May 12. All the indices closed with strong gains.
The market gained momentum due to the rally in big tech stocks like Broadcom, Micron, AMD and Tesla. The US market is now confident that the Fed will definitely cut rates by 0.25% in December and its probability has reached 81%. In such a situation, the mood of the American market has become positive. Talking about the Asian market, Hang Seng index has seen a rise of 232.76 points, Nikkei has seen a rise of 328.88 points and Kopsi has seen a rise of 31.65 points. Taiwan index has gained 401 points and Shanghai has gained 19 points.
Expectations of rate cut increased
According to CNBC, according to the latest data from the CME Fedwatch tool, the Fed’s probability of a 25 bps interest rate cut in December has now increased from 44% to full 70%. The last meeting of the Fed for the year 2025 is going to be held on 9 and 10 December. Currently the fed funds rate is between 3.75% to 4.00%. Due to the strong expectation of this rate cut, the mood of the markets around the world has become very positive, especially in those markets where there was huge selling of tech stocks last week. Apart from this, if we talk about the Indian stock market, today at 7:27 am a decline of 12 points was seen in Gift Nifty.
Conversation between Trump and Xi Jinping
Apart from this, the American market got another big support today from the conversation between Trump and Xi Jinping. Donald Trump wrote on his Truth Social that he had a good conversation with Chinese President Xi Jinping. Both openly discussed major issues like procurement of soybean and other agricultural goods, stopping smuggling of fentanyl drug and Russia-Ukraine war. Trump said that the relationship between the two countries is now very strong and he will visit Beijing in April 2026. Apart from this, according to CNBC Awaaz report, Fed Governor Christopher Waller and New York Fed President John Williams have said that expectations of rate cut in December have increased. Due to the US shutdown, economic data has been delayed and traders are dependent on the Fed’s statements.
China’s Foreign Ministry said that the issue of Taiwan also came up in the talks. Xi Jinping clearly said that Taiwan’s reintegration into China is necessary for the system created after the Second World War. Trump said that “something very good is going to happen”. America’s incoming Secretary of State Marco Rubio also said that a good deal will be made between the two countries at the right time. Meanwhile, Bloomberg reports that the European Union and Ukraine have prepared a new 19-point plan for Russia, but Russia rejected it outright. Overall, the Trump-Xi talks have given a positive signal to the market. Today investors are going to keep an eye on some important figures of America. Retail sales for the month of September, Producer Price Index i.e. PPI, durable goods orders and the biggest number, CPI data for November coming on 18th December will also be in view.
