Markets Rally Ahead of Thanksgiving, Fed Meeting Digestion
Market Mood The Holiday Bid
Markets in holiday mode Morning Bid
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Hold onto your hats and grab a slice of pumpkin pie, because markets are on a wild ride ahead of the Thanksgiving holiday in the U.S. Stocks are skyrocketing, fueled by hopes of a more benign interest rate backdrop. It’s like a rollercoaster of optimism, with the S&P 500 and MSCI’s all-country index up over 8% this month alone, and the tech-heavy Nasdaq Composite soaring 11%. Who needs a turkey dinner when you can feast on these gains?
But let’s not get too stuffed just yet. The Federal Reserve’s latest meeting minutes are still digesting in the market. Apparently, central bank officials are being cautious and will only raise interest rates if they see a falter in inflation control. Investors are getting giddy with the thought that the Fed might be done raising rates for this cycle, eyeing the middle of next year for potential cuts. It’s like waiting for a magician to pull a rabbit out of their hat, except in this case, it’s interest rate cuts out of the Fed’s sleeve.
Even the mighty Nvidia couldn’t dampen the mood. After a massive 200% surge this year, Nvidia shares ended down 2.5% amid fears of U.S. chip curbs affecting growth in China. But fear not, because the other members of the Magnificent Seven megacap group, like Amazon, Alphabet, and Microsoft, rallied on Wednesday. It’s like a superhero alliance, coming together to save the day…and investors’ portfolios.
Now, let’s get a taste of what’s happening in other parts of the world. Japanese markets are taking a break for a national holiday, but the Nikkei pushed its way to near a fresh three-decade high before taking a nap. In China, stocks slid as everyone is eagerly waiting for new stimulus for the Chinese economy. China’s economic growth targets for next year are expected to range from 4.5% to 5.5%, as Beijing wants to keep the job market bustling and achieve its long-term development goals. It’s like watching a high-stakes tightrope act, balancing economic growth and stability.
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As for currencies, the dollar had a little bounce back, while the yen weakened against the dollar. Economic data showed that the number of Americans filing for unemployment benefits dropped more than expected. It’s like a see-saw battle between currencies, with the dollar trying to regain its strength and the yen fighting against headwinds.
And what about oil? Well, it dipped a bit because OPEC+ producers unexpectedly delayed a meeting on production cuts. It’s like waiting for the main event, only to hear that it’s been postponed. Patience, my friends, patience.
As we head into the Thanksgiving holiday, trading volumes are expected to be subdued. So kick back, relax, and enjoy the festivities. But keep an eye out for key developments on Thursday, like Singapore’s CPI, Indonesia’s Central Bank meeting, and Euro zone flash PMIs. Who said economics couldn’t be exciting?
That’s all for now, folks! Remember, invest wisely and don’t let the market turkeys get you down.
Disclaimer: The content presented here is for informational purposes only and should not be construed as financial advice. Consult a professional advisor before making any investment decisions.
Image Source: ANBLE’s Stock Market Ticker
