Happy Tuesday! The Fed is set to cut rates by 0.25% this week, but rising inflation and a slower pace of cuts in 2025 could change the game. Here’s what this means for investors next year. Also, take a look at how recent market moves may be boosting precious metal prices.

—Josh Enomoto

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MARKET RECAP

Yesterday: Tech stocks pushed U.S. markets higher, led by Broadcom’s continued surge, while international markets lagged on weaker China retail data. All eyes are on the Fed’s rate decision Wednesday, with expectations of a 0.25% cut and signals for slower easing in 2025. Bond yields remain elevated and cautious optimism persists for next year.

On Our Radar: After dissecting U.S. retail sales earlier this morning, analysts will turn to the home builder confidence index, coming out shortly. The most notable corporate earnings disclosure will be Cal-Maine Foods, especially in light of soaring egg prices.

TOP STORY

Fed Poised To Cut Interest Rates By 0.25% This Week: Here's Why Your Focus Should Shift To Other Signals

The Fed’s expected 0.25% rate cut this week is already priced in, but the real focus is on its updated outlook. Signals from the dot plot and economic projections could reveal slower cuts ahead, rising inflation risks, and cautious optimism on growth.

Here’s how these signals could impact the economy — and what it means for investors.

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FIVE ZINGERS

Legal Drama: Semiconductor titans Arm Holdings and Qualcomm squared off before a federal jury on Monday over a licensing dispute. Read about what analysts believe will be the likely outcome of this matter.

Tape Cutting: Healthcare giants CVS Health, Cigna and UnitedHealth saw their shares drop on Monday after President-elect Trump declared he would target pharmacy-benefit managers (PBMs). Discover the likelihood of this proposal gaining traction.

Artificial Boost: Advanced chip specialist Marvell Technology saw its shares zoom to a new 52-week high, thanks largely to Broadcom’s robust earnings report. Learn why the AI boom may still offer fuel for MRVL stock.

Nest Egg: According to a Fidelity Investments report, the average 401(k) balance climbed to $132,300, a robust 23% increase from last year. Learn why consistency is the key for long-term growth.

Short Squeezed: SoundHound AI has witnessed its shares skyrocket more than 700% this year and has gained 173% this month. A very high short percentage of float implies continued upside as the bears cover their pessimistic transactions.

SPECIAL OFFER

The Insider Report: Semiconductors, Quantum Computing and Crypto…Oh My!

Editor’s Note: Every week, Benzinga Edge members receive the Insider Report. It’s a rundown of what to expect from the markets in the week to come, which sectors are outperforming and why, and most importantly, a selection of hand-picked stocks that are poised to move up because of that week’s trends. Here’s a sneak peek:

I'm really liking the price action in precious metals that we've seen over the past week, and as a result, it's a good time to check in on what's happening in the ratio between gold (GLD) and silver (SLV).

The big thing here is that in real bull markets for precious metals, I like to see silver (SLV) outperform gold (GLD) on a relative basis. For this ratio, it would mean that we want to see it decline. Note how over the past few weeks we had a corrective rally to the upside, where GLD outperformed SLV.

The big inverted saucer present on the chart below is what's really on my radar here in this ratio. If we see support break to the downside, then I wouldn't be surprised to see silver test its all-time highs from 2011 in the $48.00-$50.00 zone next year. For gold, I'm looking for it to rally to $3,300-$3,400 at least.

To keep reading and to find out how investors can prepare for the coming oil price rollercoaster, sign up for Benzinga Edge here.

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