Wall Street: Closing without direction despite sharp drop in rates


(CercleFinance.com) – Wall Street ends without direction – even if the Dow Jones gained +0.04% -: the suspense lasted until the last minute for the S&P500 which remained in the race to register an 18th session of increase on a series of 22 and which ‘let go a little’ in the last seconds to end a decline of -0.09% after having gained up to +0.7% at the start of the session.
The frustration will not be alleviated by the fact that a few minutes after the close, the ‘futures’ erased the decline displayed at the final bell, the Nasdaq-100 recovering above 16,000 Points.

But 17 positive sessions out of 22 remains a ratio greater than 75% and the month of November has every chance of ending at its zenith, the indices remaining driven by semiconductors (and the famous ‘SOX’ index) which have served as locomotives throughout the month of November.
This Wednesday session was no exception with AMD +1.5%, Intel +1.6%, NXP +2.2%, Autodesk +3.1%, On Semiconductors +3.7%, Illumina +5 .2%, Netapp +14.5%.
The Nasdaq ended down -0.16% after flirting with +1% at the start of the session (14,425), weighed down by the decline of the giants Meta -2%, Alphabet -1.6%, Tesla -1.1% , Microsoft -1%

Shortly after the close, 2 real ‘cloud’ specialists published their quarterly reports: Snowflake jumped by +10% but Pure Storage fell by -14%.

One of the highlights of this session was the publication of the 2nd estimate of the gross domestic product (GDP) of the United States for the third quarter which was revised to +5.2%.

US growth is much stronger than the 4.9% initially announced thanks to the strength of consumption and investments (the latter item being revised upwards): this is the most spectacular growth recorded since the 4th quarter 2020.

Small downside with the widening of the trade balance deficit by +$3 billion to $89.84 billion in October while economists predicted a very slight increase in deficit of $86.70 billion… a figure largely ignored.

On the ‘treasuries’ side, yields continue to ease: T-Bonds erase -8 points to settle at 4.253%, the lowest since September 14,
the yield on the ‘2 year’ falls by more than -10 Points to 4.635%.

The President of the Richmond FED, Fred Barkin believes that it is premature to talk about rate cuts in 2024, he adds that his own expectations are quite far from those of the market.
His colleague RaphaĆ«l Bostik, much more ‘dove’, believes that inflation will eventually converge towards 2%.
The easing of rates may have been favored by the sharp downward revision of OECD forecasts, which reduced its US GDP growth target from 2.4% to 1.5%.

Barrel prices are changing, rising sharply on the eve of the Opec summit verdict in Vienna (delayed by 5 days): WTI increased by 1.8% to $77.7 per barrel.

Note that the ounce of gold, boosted by the drop in rates, climbs towards $2,050, which is less than 0.5% of its absolute record of May 4.

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