Major averages fell mildly on lower volume. This holiday-shortened weak is traditionally a quiet one, but oil and other commodities are near major new lows which is unsettling to markets. The market is down this morning on news of a Russian jet being downed by Turkey while in Turkish airspace. Historically, these types of news pullbacks tend to be short-lived.
It is widely believed the Fed will hike rates 25 basis points when they meet in December. For 2016, bond-market futures suggest rates will only rise an additional 50 basis points, but Goldman Sachs thinks the Fed is more likely to boost rates by 1% next year. They predict the economy will grow fast enough to spur the Fed to raise rates by an average of once a quarter. They cite a tight labor market, steady consumer spending, and stronger home sales, among other things.
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