US markets closed mixed on Thursday, with the Dow ending a losing streak despite the Fed forecasting fewer 2025 rate cuts and higher inflation. Positive economic data, including falling jobless claims and revised GDP growth, were offset by losses in several S&P 500 sectors. Asian and European markets experienced declines, with oil prices falling and the dollar strengthening. US futures indicate a negative opening on Friday.
The CNN Fear and Greed index shows “Extreme Fear” as US stocks have a mixed performance. The Dow ended its longest losing streak since 1974, but gains were short-lived. Micron Technology shares fell 16%, despite better-than-expected earnings, while positive economic data had little market impact. Investors await earnings reports from Carnival and Winnebago.
Global markets showed mixed results on December 16th, with the Nasdaq reaching a record high while the Dow fell. Economic indicators varied, with the services PMI rising but the manufacturing index dropping. Asian markets were diverse, with some showing gains and others declines. Oil prices fell, and the US dollar strengthened. Futures point to a cautious market opening.
US stock futures edged lower in premarket trading, following Wednesday’s record highs. November’s inflation data met expectations, increasing the likelihood of a December rate cut. Analyst perspectives on market breadth, valuations, and sector performance offer valuable insights into the current market dynamics. Key economic data releases are anticipated this week.
Warren Buffett’s famed market valuation metric, the Buffett Indicator, has surged past levels seen before the Dot-Com crash and the 2008 financial crisis, sparking concerns of market overvaluation. While some analysts remain bullish, this warning sign warrants investor attention.
The Dow Jones Industrial Average closed above 45,000 for the first time, driven by strong tech performances from Salesforce and Marvell. While the CNN Business Fear & Greed Index remains in ‘Greed’ territory, mixed economic data reveals a nuanced market outlook.
US stock futures surged on Friday, following the Thanksgiving holiday, as investors aimed for a strong end to November. Positive futures performance across major indices, alongside easing treasury yields and speculation of further interest rate cuts, fueled the optimism. However, analysts offer mixed perspectives on the upcoming market trends, highlighting both bullish and bearish signals.
US stocks experienced a mixed day, with the Nasdaq Composite falling over 100 points. While some sectors like real estate showed gains, tech lagged. Key economic indicators, including jobless claims and PCE price index, offered a mixed picture of the US economy.
The Fed’s recent rate cut, while good news for the economy, doesn’t necessarily guarantee a surge in the stock market. History shows that rate cut cycles, while usually beneficial for stocks, often don’t lead to immediate gains. We analyze the historical relationship between rate cuts, the yield curve, and stock market performance to understand why investors should remain cautious and vigilant despite the recent Fed action.
Bank of America has identified key dates leading up to the November US Presidential election that could significantly impact the stock market, with the day after the election being the most volatile. The bank’s analysis, based on options prices, suggests potential fluctuations in the S&P 500 index due to key economic reports and corporate earnings announcements.
