Leisurely trading
Dow continues to drag its feet
December 28, 2023, 11:10 p.m
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Hopes for a series of interest rate cuts by the Fed are also supporting the stock markets on the penultimate trading day of the year. Expectations receive new fodder from the weekly labor market data. But that’s not enough for price fireworks; overall, trading is rather calm.
The interest rate hopes of US investors supported Wall Street even in the uneventful period between the years. The Dow Jones Index the standard values closed 0.1 percent higher at 37,710 points. The technology-heavy one Nasdaq was barely changed at 15,095 points. The broad one S&P 500 also went out of trading hardly changed at 4783 points.
Support in 2023 was provided by the hope that the US Federal Reserve would soon cut interest rates and a “soft landing” for the US economy, as well as the hype surrounding artificial intelligence (AI). “I think the market will continue to rise in the near term,” said Victoria Fernandez, chief strategist at investment firm Crossmark in Texas. However, she also pointed out longer-term risks: “Inflation will continue to fall, but probably not as quickly as the market expects.”
The latest US job data, among other things, ensured a good mood. The rise in weekly initial US jobless claims to 218,000 from 205,000 previously was above the average analyst forecast of 210,000. “The data shows some slowing, which suggests an earlier shift in Fed policy,” said Thomas Hayes, chairman of private equity firm Great Hill Capital. The monetary authorities are trying to keep inflation in check and cool down the hot labor market by tightening monetary policy.
Oil prices under pressure
At the Oil market things went up and down due to low liquidity. After an initial stabilization, prices for the North Sea Brent and US light oil WTI were between 1.6 percent and 2.9 percent in the red at $78.38 and $71.98 per barrel (159 liters). Investors kept an eye on the situation in the Red Sea. After attacks by the Iran-backed Houthi militia in Yemen, major shipping companies ordered a temporary halt to these routes. But there are increasing signals that this could soon be lifted. Maersk is planning several dozen container ships for the coming days and weeks via the Suez Canal and the Red Sea. Concerns about shipping in the Red Sea had eased, but worries about tensions in the Middle East, particularly Iran’s involvement in the region, remained, said Hiroyuki Kikukawa of NS Trading. n
In terms of individual stocks, shares of Chinese companies listed in the USA rose due to above-average foreign inflows. The titles of JD.Com and Alibaba rose by 2.7 and 1.5 percent respectively.
However, they flew from the depots CytoSorbents. The pharmaceutical company’s shares fell by more than 33 percent. CytoSorbents’ device to reduce bleeding during surgery failed to meet the goals of a clinical trial.
The problems of the US aircraft manufacturer Boeing However, with the 737 MAX model there is no end. The papers of Airbus’ arch-rival fell by almost one percent. The US aviation authority FAA announced that Boeing had asked airlines to check newer 737 MAX aircraft for a possible loose screw in the rudder control system. The FAA plans to “closely monitor” the targeted inspections and consider additional measures if further loose or missing components are discovered.