S&P 500 May Reach 7,000 This Week as Trump Hints Fed Chair Choice

The upcoming week could be pivotal for the S&P 500 as President Donald Trump hints at announcing his choice for the next Federal Reserve Chair. On the horizon, a special election in Tennessee could shift the balance of the GOP’s House majority.

S&P 500 Predictions and Market Trends

The S&P 500 index is showing positive signs, having recently crossed above its 50-day moving average. Market expert Ed Yardeni has projected that the index may reach 7,000 by year-end, surpassing its previous record high of 6,920. Achieving this target would require only a 2.2% increase from the current levels.

Current Market Statistics

• Dow Jones futures fell by 48 points (0.1%) on Sunday.
• S&P 500 futures decreased by 0.13%.
• Nasdaq futures slid by 0.12%.
• Yield on the 10-year Treasury rose to 4.032%.
• The U.S. dollar weakened against the euro by 0.04% and against the yen by 0.15%.
• Gold prices increased by 0.1%, reaching $4,259.50 per ounce.
• U.S. oil futures climbed by 1.55%, settling at $59.46 per barrel.
• Bitcoin dipped by 0.39%, valued at $90,450.

The S&P 500 recently surged nearly 4% in a trading week shortened by Thanksgiving. With the Federal Reserve considering another rate cut this month, a 2.2% rise appears attainable.

Anticipation of Fed Chair Announcement

Trump indicated he would soon announce his nominee for the Federal Reserve Chair. Speculation surrounds Kevin Hassett, director of the National Economic Council, who is currently favored in prediction markets with a 66% likelihood of nomination.

This announcement could influence market sentiments towards more accommodative policies at the upcoming Federal Reserve meeting on December 9-10, where there’s an 87% chance of a quarter-point rate cut, according to CME’s FedWatch tool.

Tennessee Special Election

On Tuesday, voters in Tennessee will select a successor for a congressional vacancy in a traditionally Republican district. The race features Republican Matt Van Epps and Democrat Aftyn Behn, with polls suggesting a tight competition.

A victory for Behn could narrow the GOP’s slim majority in Congress and elevate the importance of affordability issues. This follows significant Democratic gains in off-year elections, which may intensify efforts to extend enhanced Affordable Care Act subsidies to stabilize insurance premium rates for the upcoming year.