The day of reckoning is finally here. Today, Federal Reserve front man Jerome Powell will announce what the entire market widely expects to be very little. No change in interest rates is pretty thoroughly priced in at this point so expect anything other than that to provoke a strong reaction. Inflation came in yesterday, the November MoM rate a tiny bit higher than expected; CPI equally above expectations although nothing worth writing home about.
Macroeconomic data aside, stocks remained unphased. The S&P 500 continued its recent winning streak to rise to 4,643 points by yesterday’s close. Nasdaq Composite also performed well, gaining 0.70% on Tuesday to reach 14,533. Both indices are now at their highest for the year. This is to say nothing of the Dow Jones however, which has now risen to within spitting distance of its previous all-time high set back in January 2022.
The drama isn’t just contained to the US either, the German DAX index entered all-time high territory last week and the French CAC 40 briefly broke new ground on the intraday during yesterday’s session before closing lower. In stark contrast, Hong Kong’s Hang Seng index continued to make fresh lows this week, falling to 16,201 on Monday, now down almost 30% since its peak in January.
Gold continued its fall from grace this week, losing 1.13% on Monday before trying and failing to make up for it on Tuesday, closing under $1980 an ounce. While we’re on commodities, oil too vigorously resumed its downtrend on Tuesday, Brent Crude falling 3.4% to close under $74 a barrel, WTI now under $69. Without a change in supply and demand dynamics, many traders see little reason for optimism.
Advertencia de riesgos : Productos derivados del trading y productos potenciados poseen un nivel más alto de riesgo.
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