Key Points
- Stocks started the week on the front foot as Trump elected Scott Bessent for Treasury Secretary.
- Traders look ahead to a big day in the markets tomorrow, with Core PCE and GDP taking center stage.
- The NASDAQ is continuing to grind back to all-time highs. Will a lower volatility period help the stock market?
Trump Elects Bessent
Markets prefer predictability and stability when it comes to economic policy. On Friday, President-elect Donald Trump nominated hedge fund manager Scott Bessent as the new Treasury secretary.
Previously, Bessent said he saw taxing US consumers via trade tariffs as a “bargaining tool,” and investors were pleased that there was a voice for tax moderation. Overall, this appointment is considered investor-friendly and will keep risk sentiment positive in the short term. This is good news for the NASDAQ bulls.
Attention Turns To Inflation & GDP
Wednesday will likely be a big day for forex traders, with the FOMC meeting minutes, Core PCE Price Index and Gross Domestic Product (GDP) figures set to cause a fresh wave of volatility in the stock market. The FOMC meeting minutes will likely confirm the less dovish view from the Federal Reserve, but traders will be keen to read any hints around a December cut.
Core PCE inflation and prelim GDP are expected to remain roughly the same as the previous figures, which will likely keep the positive sentiment in the NASDAQ. Any unwanted surprises, such as much higher inflation or much lower GDP, could derail this.
NASDAQ Continues Grind Higher – NASDAQ Prediction
The bullish trend in the NASDAQ remains very strong, with the recent bull run seeing the price rise from 19886 to 21225 in just four trading days. This meant the NASDAQ printed record highs. In the previous article, it was mentioned that the 61.8% daily Fibonacci retracement is a key support area, and you can see the price has now reacted from this area on four occasions.
There has also been a bullish crossover on the H4 chart between the EMA12 and EMA36, so traders may want to use this to continue this momentum. The next level to watch out for would be the all-time highs at 21,236.
Risk Disclosure: The information provided in this article is not intended to give financial advice, recommend investments, guarantee profits, or shield you from losses. Our content is only for informational purposes and to help you understand the risks and complexity of these markets by providing objective analysis. Before trading, carefully consider your experience, financial goals, and risk tolerance. Trading involves significant potential for financial loss and isn't suitable for everyone.
