U.S. stocks opened trading with growth for the second day in a row. Will they stay up?

The three major U.S. stock indexes rose after the opening of stock exchanges on Friday, October 21 by about 0.6% each. The market starts the day with growth for the second day in a row. On Thursday, however, extremely positive dynamics in the morning did not save securities from collapse at the end of trading: shares showed the strongest reversal during the day since April.

- The main U.S. index S&P 500 in the first minutes after the start of trading rose by 0.57%. But the current week may still turn out to be the worst for the index since Ma, Bloomberg writes.

- The blue-chip index Dow Jones Industrial Average also added about 0.6%.

- The Nasdaq Composite index, heavily weighted toward technology companies, rose 0.64%.

- Shares of Nvidia, the world leader in the artificial intelligence processor market, were down about 1.4%. In contrast, shares of Alphabet (Google's holding company) rose by 3.5%. Shares of Apple, Tesla and Meta were also growing, while Amazon and Microsoft were losing ground.

- Bitcoin was trading 7% cheaper than it was 24 hours ago: at $84,762, CoinGecko shows. Over the past 24 hours, the price of the largest cryptocurrency by capitalization has fallen to almost $81,000, the lowest since mid-April.

U.S. stocks moved to the upside on Friday after New York Federal Reserve Bank President John Williams allowed the likelihood of further interest rate cuts by the Federal Reserve Bank of New York, according to CNBC. Williams called the Fed's current policy "slightly restrictive" and acknowledged that there is still "room for further [rate] adjustments in the near term" to bring policy "closer to the neutral range."

Williams' comments gave investors renewed hope that the Federal Reserve may cut rates at its December meeting, CNBC says. Traders now estimate a 75.5% chance of the Fed easing monetary policy in December by a quarter percentage point, according to data from CME Group's FedWatch tool. A day earlier, that chance was estimated at only 39%.

"There remains some ambiguity in the phrase "in the near term," but the most obvious reading is "at the next meeting." We are cautiously interpreting Williams' words as a signal that [Fed Chairman] Jerome Powell is set to go lower, realizing that the next two labor market reports are likely to be weak anyway with unemployment at 4.5% or higher," said Evercore ISI vice chairman Krishna Gua, as quoted by Bloomberg.

All three key U.S. stock indices on November 20 showed the strongest reversal in a single trading session since April 8. At the height of the morning rally on November 20, they gained more than 1.5%, but closed in significant negative territory. At first, the market was inspired by Nvidia's quarterly results and unexpectedly strong labor market statistics, but then concerns about the Fed Funds rate outweighed this optimism.

This article was AI-translated and verified by a human editor