US Session: U.S. markets are expected to open in the green, driven by hopes of interest rate cuts

Here is the translation:

Five Тhings Investors Need to Know before the U.S. Market Opens

1. From Hero to Zero

Investors never got the post-earnings boost they expected from Nvidia. The stock started yesterday’s session higher but then sharply reversed midday, once again casting doubt on the entire AI-driven market rally.

Key points:

• Nvidia erased a 5% post-earnings gain and finished the day down more than 3%, despite its impressive results and guidance. The stock is on track to close the week 5% lower.
• The Dow Jones swung more than 1,100 points between highs and lows during the session.
• All three major indexes finished firmly in the red, with the Nasdaq Composite down 2.15%.
• The VIX volatility index jumped to its highest level since April — a sign of rising fear on Wall Street.
• Bitcoin fell to its lowest levels since April, confirming the broader risk-off mood.
• Ray Dalio said earlier in the day that the market is in “bubble territory,” though he added this isn’t an automatic sell signal.

All three U.S. indexes are heading for a losing week.

2. Labor Market and Rates

The delayed September jobs report finally arrived and showed stronger-than-expected growth — 119,000 new jobs — while unemployment rose to 4.4%, the highest since 2021.

The probability of a December rate cut remained low after the report — until this morning, when New York Fed President John Williams said he sees “room for further adjustment.” His comment revived expectations for a rate reduction.

3. Gap Beats Expectations

The viral Gap ad — “Better in Denim,” featuring the group Katseye — drove strong customer traffic. This helped the retailer post a 5% increase in same-store sales for the quarter, beating analyst forecasts.

• Revenue and profit topped Wall Street expectations.
• The stock jumped 4.5% in after-hours trading.
• The only weak spot was Athleta, with sales down 11%.

The trend this season: retailers offering good value are attracting shoppers across income groups.

4. Washington vs. State-Level AI Laws

The White House is preparing an executive order that would block individual state AI regulations. According to a draft obtained by CNBC, the order would focus on:

• legal action against state laws
• withholding federal funding until states comply

The move would benefit major AI companies, which oppose a patchwork of state-level rules. The White House has not confirmed the document, saying discussions remain “speculative” until officially announced.

5. Aerial Dogfight

Joby Aviation is suing rival Archer Aviation, claiming Archer used stolen internal information to win a deal with a real-estate investor.

Joby accuses a former employee of “corporate espionage.” Archer called the lawsuit “baseless” and “entirely without merit.”

U.S. Futures Rise on Hopes of a December Rate Cut

U.S. stock futures are higher on Friday after New York Fed President John Williams signaled that the central bank may cut rates in December.

Futures on the S&P 500 are up 0.5%, the Nasdaq-100 is up 0.4%, and Dow Jones Industrial Average futures are rising 254 points or 0.6%.

Comments from a key Fed figure like Williams pulled markets out of the AI-driven selloff and boosted expectations that the Fed will cut rates next month for the third time this year. Fed-funds futures now price in a more than 70% chance of a 25 bps cut — up from 39.1% just a day earlier, according to CME FedWatch.

Williams said monetary policy is “moderately restrictive, though less so than before recent actions.” He added that “there is room for further adjustment,” which would move rates closer to the “neutral range” while keeping the Fed’s objectives balanced.

AI stocks, which had been headed for another tough day, trimmed losses in premarket trading. Nvidia and AMD both turned green, rising about 1%. Investors hope easier monetary policy will support the economy and justify high tech valuations.

Market indexes remain under pressure, after yesterday’s dramatic reversal. At one point, the Dow was up more than 700 points after Nvidia’s strong report, but later erased the gains, while the S&P 500 and Nasdaq also closed in the red as concerns grew that a December rate pause could persist.

So far this week, the S&P 500 is down 2.9%, the Dow nearly 3%, and the Nasdaq 3.6%.

Some investors believe the decline is a normal pullback after this year’s strong run, not a sign of a deeper crash.

“In early November the market became overheated, but after three weeks of pressure, sentiment indicators now show extreme fear. From a contrarian view, this flushes out the weak hands,” said Ryan Detrick, chief market strategist at Carson Group.

On Friday, Bitcoin is down about 3%, extending its weekly loss to over 11%. The cryptocurrency is trading at its lowest level since April, as investors dial back risk appetite.