Powell Dashes Hopes for Rate Cuts, Markets Close Lower
πΊπΈ S&P 500 Index: -0.59% π
πΊπΈ Nasdaq Index: -0.64% π
πͺπΊ Stoxx 600 Index: 1.11% π
π―π΅ Nikkei 225 Index: -0.48% π
ππ° Hang Seng Index: -1.94% π
π¨π³ CSI 300 Index: -1.73% π
πΈπ¬ Straits Times Index: 0.79% π
β’ U.S. stock markets declined after Jerome Powell suggested the Fed does not need to rush into rate cuts, as the economy remains resilient. The S&P 500 and Nasdaq both fell by -0.6%.
β’ Chinese stocks plunged, with the Hang Seng Index and CSI 300 Index falling by -1.9% and -1.7%, respectively. Tech stocks were the main drag, with Tencent's share price dropping slightly despite mixed earnings results.
π‘ Upcoming Events: π‘
β’ Friday will see the release of U.S. core retail sales month-on-month, EU economic forecasts, Chinese industrial production year-on-year, Chinese retail sales year-on-year, Chinese unemployment rate, Japan preliminary GDP quarter-on-quarter.
π‘ Things to Know Today: π‘
1. Powell, in a speech at the Dallas Fed, said that due to sustained economic growth, a strong job market, and inflation still above the 2% target, the Fed can "cautiously consider" rate cuts.
Powell
2. The U.S. Labor Department reported Thursday that initial jobless claims for the week ending November 9 decreased by 4,000 to 217,000 (seasonally adjusted), below the economists' forecast of 223,000.
US Labor Department
3. Disney $Walt Disney(DIS)$
Walt Disney
4. In October, U.S. producer prices increased by 0.2% month-on-month, due to higher costs in services like portfolio management and airfares. This suggests that progress in reducing inflation may be stalling.
5. Merck $Merck(MRK)$
Merck
β Key Takeaway:
Focus on earnings, not blindly hoping for rate cuts.
Comments
Based on the market highlights and recent news articles, here are some key points and trends to consider:
Tech Stocks: Technology stocks have been in focus, with positive momentum and potential for growth. The sector has seen notable performances, driven by factors such as rising demand for digital currencies, artificial intelligence, and streaming services. Companies like ASML Holding, NetEase, Zeta Global, Nvidia, and Shopify have shown resilience and growth potential.
U.S.-China Trade Tensions: The ongoing U.S.-China trade tensions continue to impact market sentiment. This can lead to volatility and fluctuations in stock prices, especially for companies with significant exposure to these markets. It's important to monitor developments in trade negotiations and consider the potential implications for specific stocks.
Earnings Season: Earnings reports have been a significant driver of market movements. Companies like Disney (Walt Disney) have reported positive Q4 earnings, driven by growth in streaming services. When assessing investment opportunities, it's crucial to analyze earnings performance, revenue growth, and other key financial indicators.
Fed Rate Cuts: Federal Reserve Chairman Jerome Powell's recent comments suggest that rate cuts may not be imminent, as the economy remains resilient. This has influenced market sentiment, particularly in the U.S. stock markets. Investors should focus on company fundamentals, earnings, and growth potential rather than solely relying on hopes for rate cuts.
Chinese Stocks: Chinese stocks, particularly tech stocks, have faced significant downward pressure. The Hang Seng Index and CSI 300 Index experienced notable declines. Factors such as mixed earnings results and the broader impact of trade tensions have contributed to the negative sentiment. It's important to carefully assess risks and opportunities associated with investing in Chinese stocks.
Overall, it's important to conduct thorough research and analysis before making investment decisions. Consider factors such as company fundamentals, earnings performance, market trends, and geopolitical developments. Diversification and a long-term investment approach are important strategies to mitigate risks.
Important: The information provided is for reference purposes only and does not constitute investment advice. Investing in stocks involves risks, and it's recommended to consult with a qualified financial advisor before making any investment decisions.