Market Highlights π‘- 23 December 2024
Wall Street rebounds on easing inflation concerns; Asian markets decline amid hawkish Fed outlook.
πΊπΈ S&P 500 Index: 1.09% π
πΊπΈ Nasdaq Index: 1.03% π
πͺπΊ Stoxx 600 Index: -0.88% π
π―π΅ Nikkei 225 Index: -0.29% π
ππ° Hang Seng Index: -0.16% π
π¨π³ CSI 300 Index: -0.45% π
πΈπ¬ Straits Times Index: -1.14% π
US stocks rebounded, with the S&P 500 $S&P 500(.SPX)$ and Nasdaq $NASDAQ(.IXIC)$ rising 1.1% and 1%, respectively, as better-than-expected inflation data eased concerns about interest rate trends.
The core PCE price index in the U.S. rose 0.1% month-over-month in November, below the expected 0.2% and down from 0.3% in October, indicating slower price increases for goods and services excluding food and energy.
Asian markets closed lower, with the Hang Seng Index $HSI(HSI)$ and CSI 300 Index $CSI300(000300.SH)$ falling -0.2% and -0.5%, respectively, as mixed performance in technology and real estate sectors and investor reactions to the Fed's hawkish stance on next year's rates weighed on sentiment.
China kept its one-year Loan Prime Rate (LPR) at 3.1% and its five-year LPR at 3.6%, in line with market expectations. This decision came amid persistent deflationary pressures and weak credit demand.
Japan's core inflation rate in November rose 2.7% year-over-year, up from 2.3% in October and above the expected 2.6%, marking the highest level in seven months, driven mainly by food and fuel costs.
π‘ Upcoming Events: π‘
On Monday, the U.S. will release the Central Bank Consumer Confidence Index.
On Tuesday, Japan will release its Bank of Japan monetary policy meeting minutes.
On Thursday, the U.S. will release unemployment claims.
On Friday, Japan will release Tokyo Core CPI YoY and CPI YoY.
π‘ Things to Know Today: π‘
1. President-elect Donald Trump urges the EU to reduce the trade deficit by purchasing more U.S. oil and gas, warning of potential tariffs if the request is unmet.
Donald Trump
2. The U.S. Congress passes a temporary funding bill extending federal operations through March 2025, covering disaster relief and agricultural aid, but excluding President-elect Trump's proposed debt ceiling request, avoiding a government shutdown.
US Congress
3. Google $Alphabet(GOOGL)$ proposes relaxing its default search engine agreement as a remedy in the U.S. antitrust case, aiming to avoid harsher measures, such as selling Chrome or splitting Android services.
Google search engine
4. The U.S. Food and Drug Administration (FDA) approves Eli Lilly's $Eli Lilly(LLY)$ weight-loss drug Zepbound (tirzepatide) as the preferred treatment for moderate to severe obstructive sleep apnea in obese adults, providing an alternative to traditional CPAP therapy.
Zepbound
5. Bank Negara Malaysia introduces measures to mitigate the impact of rising medical insurance premiums, including spreading the increase over three years, suspending adjustments for those over 60, and reinstating expired policies without additional underwriting.
β Key Takeaways:
In the last week of 2024, investors expect U.S. stocks to continue growing into 2025, supported by strong economic fundamentals, robust corporate earnings, and pro-growth policies from President-elect Donald Trump.
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S&P 500 (SPY) Analysis
Business and Industry: The SPDR S&P 500 ETF Trust (SPY) tracks the performance of the S&P 500 index, which is composed of 500 leading companies in various sectors of the U.S. economy. The S&P 500 represents a broad cross-section of the U.S. stock market and is often used as a benchmark for U.S. equity performance. The companies in the S&P 500 span multiple industries, including technology, healthcare, finance, consumer discretionary, and more.
Earnings and Earnings Forecast: Unfortunately, the latest earnings data for the S&P 500 is not available at the moment. It would be beneficial to evaluate the earnings performance and forecast of individual companies within the index to understand the potential future growth of the S&P 500.
Recent Trends: The stock price of the SPDR S&P 500 ETF Trust (SPY) was $591.15 USD on December 23, 2024. The support price is $587.55 USD, indicating a level where buying pressure may be expected. The resistance price is $591.25 USD, representing a level where selling pressure may become significant. The average cost of the stock is $585.49 USD. In terms of capital flow, there was a net inflow of $19.268 billion USD over the past 5 days.
Analyst Viewpoints: Unfortunately, specific analyst viewpoints and target prices for the SPDR S&P 500 ETF Trust (SPY) are not available at the moment. It would be helpful to consult multiple analysts' opinions to gain a comprehensive understanding of the investment outlook for the S&P 500 index.
News Impact: News and market developments can have a significant impact on the stock price and future growth of the S&P 500. It is essential to monitor news related to economic indicators, corporate earnings, trade policies, geopolitical events, and any other factors that may affect the overall market sentiment.
Please note that the above analysis is for informational purposes only and should not be considered as investment advice. The stock market inherently carries risks, and fluctuations in stock prices are normal. It is essential to conduct thorough research, consider personal financial goals, and consult with a professional financial advisor before making any investment decisions.