Market Mood Remains Cautious Ahead of Powell’s Speech
As investors eagerly await Federal Reserve Chair Jerome Powell’s highly anticipated speech, US stocks have experienced a mixed day, with the Dow Jones Industrial Average inching up 0.1% and the S&P 500 slipping 0.2%. The Nasdaq Composite, meanwhile, has dropped 0.3%.
Economic Data Offers Mixed Signals
The latest consumer inflation data has kept hopes for a December rate cut alive, with wholesale inflation showing prices firming slightly more than expected in October. Furthermore, initial jobless claims have fallen to 217,000, their lowest level since May, beating economists’ expectations of 220,000.
Focus Shifts to Powell’s Inflation Outlook
Investors are now keenly focused on Powell’s speech, which is expected to set the tone for interest-rate cuts. The market is particularly interested in how the Federal Reserve chair views inflation developments, as this will influence the odds of rates staying higher for longer.
Republican Sweep Boosts Trump’s Economic Agenda
The Republican party’s sweep of political power has handed President-elect Donald Trump a “trifecta” – unified control of power across Washington. This limits curbs on implementing Trump’s aggressive economic agenda, which has contributed to the post-election rally in stocks.
Corporate Earnings: Disney Shines
In corporate news, Disney’s quarterly earnings have beaten estimates, with its streaming unit swinging to a profit. The stock has jumped 8% in early trading, driven by revenue that topped Wall Street expectations.
Global Markets React to Trump’s Policies
Chinese stocks have plummeted as much as 20% from their October high in Hong Kong, with tech being the hardest hit. This decline is attributed to worries about Trump’s America-first plans. Meanwhile, Bitcoin has held above $91,000, having climbed past $93,400 in the prior session, and is up over 30% since Election Day.
Other Market Movers
The US Dollar Index has been rising, putting pressure on commodities like oil and gold, which are invoiced in dollars. In earnings news, Advance Auto Parts, Applied Materials, JD.com, and Oklo are set to release their results.
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