Stocks Recover Slightly as Optimism Grows for Fed Rate Cuts

Market Performance: The S&P 500 is up 0.06%, the Dow Jones is up 0.62%, while the Nasdaq 100 is down 0.60%. Stock indexes are mixed as Nvidia leads a decline in chip stocks after news of Meta's potential investment in Google's AI chips.

Economic Indicators: US economic data showed weaker-than-expected retail sales and consumer confidence, increasing the likelihood of a Federal Reserve rate cut at the upcoming FOMC meeting, with an 80% chance of a 25 basis point cut.

Corporate Earnings: Q3 earnings season is concluding with 83% of S&P 500 companies exceeding forecasts, resulting in a 14.6% increase in earnings, significantly above the expected 7.2% growth.

Stock Movements: Nvidia and other chip stocks are down, while home builders and casino stocks are rising due to favorable economic conditions. Notable gainers include Kohl's and Zoom Communications, which reported better-than-expected earnings.