(CercleFinance.com) – What a weekly scenario and what a weekend with a ‘happy ending’ worthy of the most enchanting fairy tales.
The US indices all find themselves -simultaneously- at their annual zenith, with 5 sessions of the ‘4 witches’ on December 15th.
The end-of-year ‘balance sheet dressing’ seems actively underway, the bullish rally that began on October 27 will be among the most ‘productive’ of the 21st century, and it is above all the first to see the US indices return to previous records long term at 6 months, then at 2 year intervals.
The S&P500 (+0.41%) improved its annual record by 2 points to 4,609 (a ‘highest’ since March 2022) and its closing record by +14 points to 4,602.9 (i.e. +0.1% weekly): the index completes its 6th consecutive week of increase without having ever lost more than 0.8% since October 27.
The Dow Jones advances by +0.3% to 36,263 (+0.05% weekly), best close of the year, highest since the beginning of January 2022 (2% of its historic high).
The Nasdaq (+0.45%) recorded its best annual close at 14,404, the annual zenith of 14,445 on July 17 was equaled: the annual performance reached its maximum with +37.5%, the Nasdaq-100 at 16,090 showed + 47% and aims for +50%, which would bring the index back into contact with its historic zenith of 16,644 on 11/22/2021 (2 closing at 16,570 on 11/19 and 12/27/2021).
The ‘SOX’ once again outperformed with +0.7%, with Broadcom +2.5%, Nvidia +2%, NXP +1.8%, Idexx Lab +1.6%.
But everything is not absolutely perfect because all the planets do not end up aligned on the eve of the weekend – as was the case for the previous 5 weeks – since the day ends with a sharp rise in rates after the publication of the highly anticipated report monthly report on employment in the United States published by the Department of Labor.
The +150,000 consensus is largely exceeded with almost +200,000 and the unemployment rate expected to increase to 4.00% is in reality down sharply from -0.2% to 3.7%.
This statistic, which is well above expectations, will complicate the task of the Federal Reserve in recalibrating its monetary policy: the speech it will give this December 13 (final FOMC press release) could be more ‘hawkish’ than Wall Street hoped.
This results in a clear tension on the bond with a US ’10-year’ showing +13 points at 4.2550%.
American light crude (West Texas Intermediate, WTI) regains 2.2% to $71.25 but this is not enough to pull the oil sector out of a downward spiral with heavy weekly losses as for Halliburton which drops -7.5 %, Diamondback -3.6%.
Copyright (c) 2023 CercleFinance.com. All rights reserved.