MARKET WRAP: STOCKS, BONDS, COMMODITIES
On Tuesday, U.S. stocks extended their rally to a fourth session. The Dow Jones Industrial Average climbed 173 points (+0.48%) to 36,577, the S&P 500 gained 21 points (+0.46%) to 4,643, and the Nasdaq 100 jumped 132 points (+0.82%) to 16,354.
Both the S&P 500 and the Nasdaq 100 marked their highest closes since January 2022.
The U.S. 10-year Treasury yield dipped 2.9 basis points to 4.204%.
U.S. data showed that the inflation rate eased further to 3.1% on year in November (as expected), and the core inflation rate remained steady at 4.0% on year (as expected).
Later on Wednesday, the U.S. Federal Reserve is expected to hold its key interest rate unchanged at 5.25%-5.50%.
Semiconductors (+1.53%), commercial & professional services (+1.13%), and insurance (+1.00%) stock sectors gained the most in the session, while energy (-1.35%), automobiles & components (-0.96%), and telecom services (-0.62%) sectors came under pressure.
Chip makers outperformed the market, with Nvidia (NVDA) rising 2.21%, Broadcom (AVGO) up 4.18%, and Advanced Micro Devices (AMD) up 2.38%.
At the same time, Meta Platforms (META) rose 2.75%, Amazon.com (AMZN) climbed 1.09%, Microsoft (MSFT) gained 0.83%, and Apple (AAPL) was up 0.79%.
Alphabet (GOOGL) eased 0.58%. The tech giant lost an antitrust case brought by video-game maker Epic Games.
Lucid Group (LCID) plunged 8.46%. The electric-vehicle maker announced the resignation of its chief financial officer.
Sonos Inc (SONO) rose 3.82% after being upgraded to "overweight" at Morgan Stanley.
Macy's (M) retreated 8.28%, as Citi downgraded the stock to "sell".
In Europe, the DAX 40 dipped 0.02%, the CAC 40 declined 0.11%, and the FTSE 100 eased 0.03%.
U.S. WTI crude oil futures dropped $2.52 (-3.53%) to $68.80 a barrel.
Gold price softened $2 to $1,979 an ounce
MARKET WRAP: FOREX
The U.S. dollar index was little changed at 103.80.
EUR/USD rose 30 pips to 1.0795. Germany's ZEW economic sentiment index bounced to 12.8 in December (vs a decline to 7.5 expected).
USD/JPY lost 67 pips to 145.49. This morning, the Bank of Japan reported that its Tankan large manufacturers index improved to 12 in the fourth quarter (vs 10 expected), and the large non-manufacturers index rose to 30 (vs 25 expected).
GBP/USD gained 12 pips to 1.2567. In the U.K., the latest jobless rate stayed at 4.2% (vs a rise to 4.3% expected).
AUD/USD eased 8 pips to 0.6560.
USD/CHF fell 30 pips to 0.8754, while USD/CAD added 16 pips to 1.359.
Bitcoin remained in consolidation mode, as it failed to break above the $42,000 level.
Registration link
https://bit.ly/3GzD19B
Use Code fx for 5% discount