Dow Jones Today: Stock Futures Point Slightly Lower Ahead of Fed Decision on Interest Rates

QuantumScape Joins Walmart in Switching Listing to Nasdaq

8 minutes ago

EV battery maker QuantumScape (QS) is joining Walmart (WMT) in changing its listing to the Nasdaq this month.

A day after the world’s largest retailer debuted on the Nasdaq, QuantumScape on Wednesday announced that it would be leaving the New York Stock Exchange, effective after the close on Dec. 22, and debut on the tech-heavy index the following day.

QuantumScape, which will continue to trade under its “QS” ticker symbol, said it “expects a smooth transition with no disruption to trading activities.”

Shares of the San Jose, Calif.-based firm entered Wednesday have more than doubled this year.

Fed Cut or Not, Keeping Your Savings at a Big Bank Could Be Costing You a Lot More Than You Realize

39 minutes ago

With talk of an expected Federal Reserve rate cut in the headlines this week, savings rates are back in focus. But for most households, the bigger issue isn’t the Fed’s next move—it’s how much your current savings account is paying.

Many savers keep their money at Chase, Bank of America, or Wells Fargo simply because that’s where they already bank. But that familiarity comes at a steep cost: All three institutions pay a near-zero 0.01% APY on standard savings accounts.

At that rate, even a $10,000 balance earns only $1 per year.

Meanwhile, several smaller banks and credit unions are paying 4% or more on high-yield savings accounts, with the most competitive options offering 5.00% APY. While those rates are likely to dip a bit if the Fed lowers rates this week, they’ll still pay more than big banks by a wide margin.

If you’re assuming a large bank is safer, you’re not alone. But in fact, the protections are the same everywhere. FDIC insurance protects deposits up to $250,000 per depositor, per institution, regardless of the bank’s size. Credit unions insured by the NCUA offer the same coverage. Smaller institutions are just as safe. The only real difference is what your savings can earn.

Read the full article here.

–Sabrina Karl

How Low Will Your Savings Rate Go After the Fed’s Move?

1 hr 7 min ago

Financial markets overwhelmingly expect the Federal Reserve to announce another quarter-point rate cut on Wednesday. That matters to anyone with cash in the bank, since the central bank’s benchmark rate impacts what banks and credit unions are willing to pay on customer deposits. That means even a small shift is likely to ripple through to your savings account APY.

If the Fed does indeed cut by a quarter point, savings and certificate of deposit (CD) yields would be expected to drift a bit lower in the weeks that follow—roughly in line with the size of the Fed’s move. That would be a change, but not a freefall. Even after such an adjustment, many of today’s top high-yield savings accounts would still be offering rates in the upper-3% to mid-4% range.

No matter the rate environment, it’s always wise to track how your current rate stacks up against the competition. If your APY is well below what top high-yield savings accounts are paying, shifting your money can boost your return even as rates edge lower.

Whatever your savings balance, it’s worth asking a simple question: is your money earning the return it should? One practical benchmark is to aim for an APY that at least keeps pace with inflation so your money’s value grows rather than slips behind. With today’s inflation rate around 3%, any savings earning less than that is effectively losing value over time.

At the moment, the top high-yield savings accounts pay between 4.15% and 5.00% APY. Though some require meeting extra conditions, many come with no strings attached. Compared with the 3% inflation rate, that cushion is meaningful and can help your savings keep growing.

Of course, these rates are expected to dip if the Fed announces a reduction Wednesday. But the top APYs will remain strong by historical standards. Even with a mild downward shift, many accounts will still offer yields comfortably above today’s inflation benchmark.

Read the full article here.

–Sabrina Karl

This Wall Street Expert Thinks the Fed Has ‘More Room to Cut’ Than Most Expect in 2026

1 hr 39 min ago

A nice surprise in U.S. labor market data could be the gift that keeps giving next year.

Michael Wilson, Morgan Stanley’s chief investment officer and chief U.S. equity strategist, in wondering why the market has behaved the way it has—the S&P 500 has had a strong year by any standard—has landed on a possible answer: April marked the end of a rolling recession and the start of a new bull market, and the Fed is still playing catch-up.

The Federal Open Market Committee is expected to cut rates by a quarter of a percentage point this week, per CME Group and prediction markets data. What the central bank does next remains an open question, but Morgan Stanley thinks that job-market woes—private market data show U.S. employers cut 9,000 jobs in November, the fifth month of negative data in the past seven—could spur the Fed to lower rates even further next year as it seeks to correct a delayed reaction to lagging segments of the U.S. economy born out of a lack of labor data, boosting U.S. stocks.

Investors can find confirmation that a new bull market began in April in S&P 500 constituents’ earnings, which are now growing close to 10%, the best in four years, according to Wilson. “That is very important for next year, because it means the Fed has more room to cut than probably people think,” he said in an interview with CNBC Tuesday.

The private sector has been experiencing a rolling recession post-Covid, with every sector going through its own recession rather than an across-the-board collapse, according to Wilson. Though real-time data hasn’t given the Fed reason to cut, data revisions could help the U.S. central bank come to the realization that parts of the U.S. economy need it to move out of the so-called K-shaped recovery.

Read the full article here.

–Crystal Kim

Stock Futures Point Lower Ahead of Fed Decision on Interest Rates

2 hr 7 min ago

Futures contracts connected to the Dow Jones Industrial Average pointed down 0.1%.

S&P 500 futures also were 0.1% lower.

Nasdaq 100 futures were down 0.2%.