On Wednesday, December 4th, the global financial markets experienced a significant surge, driven by a combination of strong economic indicators, optimistic remarks from Federal Reserve Chair Jerome Powell, and impressive tech earnings. US markets rallied, with notable contributions from tech giants like Salesforce, while Powell’s comments on the economy and the potential for future rate cuts injected renewed confidence, boosting investor sentiment.
Despite the overall positive momentum, the economic data presented a mixed outlook. US private businesses added 146,000 jobs in November, a figure that fell short of analysts’ expectations. On the other hand, factory orders rose 0.2%, reaching $586.7 billion, signaling stability. However, the ISM services PMI dipped to 52.1, missing projections, suggesting some slowdown in the broader economy. These mixed indicators led to a sector-based divergence, with consumer discretionary and technology stocks leading the charge, while energy, materials, and financial sectors lagged behind.
The Dow Jones Industrial Average rose 0.69%, closing at 45,014.04, while the S&P 500 gained 0.61%, reaching 6,086.49. The Nasdaq Composite surged the most, climbing 1.30% to close at 19,735.12, reflecting the robust performance of the technology sector.
Globally, market optimism spread across Asia and Europe. Japan’s Nikkei 225 rose 0.38%, closing at 39,382.50, driven by gains in shipbuilding, retail, and warehousing. Australia’s S&P/ASX 200 increased by 0.15%, ending the day at 8,474.90, supported by gains in gold, IT, and consumer discretionary sectors. India’s Nifty 50 saw a solid rise of 0.94%, reaching 24,696.45, led by technology, banking, and consumer durables stocks. Meanwhile, China’s Shanghai Composite gained 0.13% to 3,368.86, and Hong Kong’s Hang Seng dropped 0.92%, closing at 19,560.44.
European markets also participated in the global rally. By 05:15 AM ET, the European STOXX 50 index rose 0.65%, with Germany’s DAX up 0.64%, France’s CAC gaining 0.44%, and the UK’s FTSE 100 inching up by 0.09%.
In the commodities market, crude oil prices saw slight gains, with WTI trading 0.34% higher at $68.78 per barrel and Brent rising 0.29% to $72.54 per barrel. Natural gas prices surged 1.91%, reaching $3.102, as anticipation builds for the OPEC+ meeting and ongoing geopolitical tensions in the Middle East. However, gold experienced a minor dip, down 0.18% at $2,671.49, while silver remained largely unchanged at $31.913. Copper rose 0.23% to $4.2110.
By 05:15 AM ET, US futures markets showed mixed results: Dow futures rose 0.02%, S&P 500 futures were down by 0.02%, and Nasdaq 100 futures fell 0.10%. The US Dollar Index slipped 0.14% to 106.17, with USD/JPY falling 0.21% to 150.28, and USD/AUD dipping 0.14% to 1.5529. Bitcoin surged past $100,000, fueled by speculation around potential regulatory changes in the US, particularly regarding the SEC nomination.
The global market’s positive performance reflects strong US economic data, reassuring comments from the Federal Reserve, and strong technology sector earnings. While some sectors are showing signs of weakness and market trends remain uncertain, the current optimism is undeniable.
