Stocks soared yesterday with the Nasdaq and the S&P leading the way with gains of 4.41% and 3.09% respectively.

The markets were mixed ahead of Fed Chair, Jerome Powell's speech yesterday. But once the text of his speech was released prior to him speaking, stocks shot up. And once he began to speak, they soared even more. They continued to rally after he was done and answered questions. And they rallied into the close to finish at their highs for the day.

The key takeaway was that the Fed was likely to slow their rate hike pace at their next meeting. Mr. Powell said, "The time for moderating the pace of rate increases may come as soon as the December meeting."

Although, he noted that "the timing of the moderation is far less significant than the question of how much further we will need to raise rates."

And he added that it seems "likely that the ultimate level of rates will need to be somewhat higher than thought at the time of the September meeting."

At the September meeting, they hinted that the target rate would be about 4.6% in early/mid 2023. With the Fed Funds midpoint now at 3.88%, they would only need another 50 basis points in December to get to their 2022 target of about 4.40%, and then another 25 bps at their February 2023 meeting to hit the terminal rate of about 4.6%.

However, at the November meeting they suggested that it might need to go a little higher than that. And they reiterated that again yesterday. Does that mean another 25 or 50 basis points on top of 4.60%? Nobody knows that yet. And that decision will likely be based on how far inflation has fallen at that time.

In the meantime, he said that the Fed "doesn't want to overtighten monetary policy. That's why we are slowing down."

And he believes that the prospect of a soft landing is still "very plausible" and "still achievable."

In other news, the second estimate for Q3 GDP came in at 2.9%, up from the previous estimate of 2.6% and views for 2.7%.

The State Street Investor Confidence Index fell to 90.4 vs. last month's 104.4. North America dropped -15.0 points to 88.7; Asia dropped by -14.2 points to 91.0; while the European component rose 5.4 points to 91.8.

And the ADP Employment Report came in with 127,000 new private payroll jobs last month vs. the consensus for 200,000.

Today we'll get another look at jobs with the Challenger Job-Cut Report, and Weekly Jobless Claims.

We'll also get the PMI Manufacturing Index, the ISM Manufacturing Index, Construction Spending, and the Personal Income and Outlays report.

Should be another busy day.

And we'll see if the market can build on yesterday's gains.

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Best,