Market Mood Remains Cautious Ahead of Key Speech
Investors are holding their breath as they await a pivotal speech from Federal Reserve Chair Jerome Powell, which is expected to set the tone for interest rate cuts. Meanwhile, the Republican sweep of political power has added a layer of complexity to the market’s trajectory.
Stocks Hover Near Records
Despite the uncertainty, the major indices are still riding high near record levels. The Dow Jones Industrial Average is barely budging, while the S&P 500 has slipped 0.2%. The Nasdaq Composite is down 0.4%, but overall, the mood remains optimistic.
Inflation Data Keeps Rate Cut Hopes Alive
The latest consumer inflation data has kept hopes for a December rate cut alive, and investors are now focused on Powell’s speech to gauge the odds of rates staying higher for longer. Wholesale inflation data showed prices firming slightly more than expected in October, adding to the sense of caution.
Jobless Claims Fall to Lowest Level Since May
Initial jobless claims fell to 217,000 last week, their lowest level since May, and below the 220,000 claims expected by economists. This positive news has added to the optimism, but investors are still wary of the potential upward pressure on prices from President-elect Donald Trump’s policies.
Corporate Earnings: Disney Shines, Tesla Slumps
Disney’s quarterly earnings beat estimates, with its streaming unit swinging to a profit. The stock jumped 8% in early trading, while Tesla shares declined more than 3.5% as investors took profits off the table following a massive surge.
Tapestry Soars on Merger Cancellation
Tapestry shares soared to an 11-year high after the parent of Coach and Capri Holdings called off its merger plans. The fashion companies cited regulatory hurdles, and shares of Capri fell 2% while Tapestry stock jumped as much as 11%.
Cryptocurrency Update
Bitcoin held above $91,000 on Thursday morning, after climbing past $93,400 in the prior session. The world’s largest cryptocurrency has been at the center of the Trump trade, which has catalyzed moves across a range of assets since Donald Trump’s election win last week.
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