Spreads
Spreads
Spreads
Spreads
Spreads
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Thursday’s stock market saw the Dow Jones slipping by 0.13%, ending its winning streak, while the S&P 500 and Nasdaq showed marginal gains. Declines in Cisco and Walmart heavily influenced the Dow’s dip, accompanied by a pullback in Chevron due to a 5% fall in U.S. crude oil prices. Despite this pause, November’s overall trajectory remained positive, buoyed by encouraging inflation reports earlier in the week. The currency market witnessed the USD index decline amid speculation about Fed rate cuts, impacting pairs like EUR/USD and USD/JPY. Fluctuations were observed in GBP/USD, while commodities like gold surged amidst falling yields, contrasting Bitcoin’s 4.2% decline.
In Thursday’s stock market session, the Dow Jones Industrial Average concluded lower, halting its recent four-day winning streak, slipping by 0.13% to close at 34,945.47. Similarly, while the S&P 500 marginally increased by 0.12%, closing at 4,508.24, the Nasdaq Composite showed a slight uptick of 0.07%, ending at 14,113.67. This pullback was influenced by significant declines in specific stocks: Cisco Systems plummeted nearly 10% following a disappointing outlook for the current quarter and full fiscal year, while Walmart saw an 8% decline after issuing a below-expectation forecast, making them the primary detractors in the Dow. Chevron also experienced a dip of 1.6% as U.S. crude oil prices observed a 5% fall.
Despite this pause in the November rally, the overall trajectory for the month has been positive, with the three major indexes showing approximately 2% gains each. The market was buoyed earlier in the week by encouraging inflation reports: October witnessed a substantial 0.5% decline in the producer price index, the most significant drop since April 2020, while the consumer price index remained stable, reinforcing investor hopes that the Federal Reserve might be content with the moderating inflation trend. As a result, the S&P 500 surged over 7%, the Dow ascended by 5.7%, and the Nasdaq soared by 9.8%, indicating substantial growth across these indices for the month.
Data by Bloomberg
On Thursday, most sectors saw positive gains, with Communication Services leading with an increase of 0.94%, closely followed by Information Technology at 0.68%. Utilities and Health Care also showed moderate growth at 0.45% and 0.38%, respectively. However, Energy experienced a notable decline of 2.11%, while both the Consumer Staples and Consumer Discretionary sectors saw significant decreases of 1.20% and 0.91%, respectively. Real Estate had minimal growth at 0.03%, while Industrials slightly dipped by 0.06%. Financials and Materials showcased modest gains of 0.32% and 0.24%, respectively, painting a mixed picture across various sectors on the trading day.
The USD index experienced a slight decline during the trading session following higher-than-expected weekly U.S. jobless claims, which prompted a downward movement in U.S. Treasury yields. This weakening trend in the dollar persists due to ongoing speculation among traders regarding the anticipated timing and magnitude of rate cuts by the U.S. Federal Reserve. As a result, the EUR/USD pair saw a marginal increase of 0.1% to reach 1.0857, buoyed by the decrease in USD yields, albeit stalling near 1.09 amidst anticipation of potential Fed rate adjustments. Conversely, USD/JPY retreated from its earlier high at 151.30 to 150.47 due to the narrowing U.S.-Japan yield spreads, showcasing cautiousness among USD bulls regarding potential intervention by the Ministry of Finance near the 152 mark.
GBP/USD experienced fluctuations, sliding from its post-claims highs at 1.2455 to 1.2420, unable to sustain above the 200-day moving average at 1.2442. Despite this, the cable remained supported by its daily cloud top and upper 30-day Bolli, while the falling Fed rate expectations favored GBP bulls in contrast to the Bank of England’s slower anticipated rate adjustments. Additionally, AUD and CAD witnessed declines owing to decreasing commodity prices and a dimmer outlook on global growth. Meanwhile, amidst falling yields, gold surged by 1.3% to $1,985, silver rose by 1.9% to $23.9, while Bitcoin faced a 4.2% decline to $36.3k, encountering selling pressure after peaking around $38k.
| Currency | Data | Time (GMT + 8) | Forecast |
|---|---|---|---|
| GBP | Retail Sales | 15:00 | 0.5% |
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