Financial markets are showing signs of fatigue.
Financial markets are showing signs of fatigue.
U.S. investors predict a 97% chance of another interest rate reduction next Wednesday. The tech giants Broadcom and Marvell are driving up the Nasdaq, while other indexes are holding steady.
After a day of profit-taking, traders on the U.S. exchanges were more reserved in their purchases as the week came to a close. The anticipation of the U.S. Federal Reserve lowering interest rates next Wednesday was further strengthened by unexpectedly low U.S. import prices in November. The futures market continues to expect a rate cut with a 97% probability. The Dow Jones Index dipped 0.2% to 43,828 points. The S&P-500 and the Nasdaq Composite finished flat for the day. However, the Nasdaq-100 Index increased 0.8%, propelled by strong gains from Broadcom and Marvell. According to preliminary figures, there were 873 gainers (811 the previous day) and 1,931 losers (2,014 the previous day) on the NYSE. 51 (31 the previous day) stocks ended the day unchanged.
On the bond market, yields continued to rise as markets expect a less aggressive pace of rate cuts after next week's reduction. The incoming U.S. President Trump's protectionist policies indicate rising inflation rates, with the U.S. Federal Reserve emphasizing its readiness to take its time with rate cuts.
The dollar remained steady, while the euro gained 0.3% to 1.0497. Sources close to the ECB state that the central bank does not plan to implement large 50 basis point interest rate hikes during this cycle, unlike the recent actions of the Swiss National Bank. Rising yields negatively impacted the gold price, with the troy ounce losing $32 to $2,468. Oil prices increased by up to 1.6%, potentially due to EU and U.S. considerations of additional sanctions against Russia and Iran, which could result in tighter supply.
Tech stocks surge at Broadcom and Marvell
Broadcom surged 24.4%, outperforming market expectations in its quarterly results and pointing out significant revenue growth potential by 2027 for its specialized chip products. This momentum pulled Marvell (+10.8%) up as well. Arm (+2.6%) and Micron (+4.3%) also saw gains, capitalizing on Broadcom's positive outlook. However, other semiconductor stocks such as Nvidia, Intel, and AMD each fell by more than 2%.
Boeing rose 1.1% as the aircraft manufacturer announced plans to invest $1 billion in its South Carolina plant to boost production of the 787 Dreamliner.
RH soared 17.0% as the home furnishings retailer reported a return to profitability. Warner Bros. Discovery dipped 3.4% after announcing a restructuring into two business segments, which had contributed to its stock's strong gains the previous day. Costco Wholesale reported higher quarterly sales and noted that customers were spending more. Its stock barely moved upward.
For additional information on today's market activities, please see here.
In the bustling streets of New York City, investors closely watched the live updates of the stock market on their mobile devices. The strong performance of Tech giants Broadcom and Marvell on the Nasdaq attracted significant attention, with Broadcom seeing a remarkable surge of 24.4%.
After a successful day on the street, traders headed to their favorite cafes to discuss the day's market activities, where the surging performance of Broadcom and Marvell was a hot topic of conversation.