Summary of the markets
The financial markets had a mixed day with big moves across commodities, currencies, and equities. Here's an overview:
Features:
- WTI crude oil rose $0.81 (+1.09%) settled at $74.18supported by stable demand signals.
- gold won $13.76 (+0.52%) to close at $2,649.69represents a safe haven purchase amid market volatility.
- Money edge up $0.08 (+0.29%) to $30.21.
- Bitcoin suffered a sharp decline, falling over $5,400 to $96,841 after hitting high $102,760as investors took profits after recent rallies.
Money:
The US Dollar broadly strengthened against major peers, boosted by strong economic data. More important advantages were against:
- Swiss Franc (CHF): +0.52%
- Euro (EUR): +0.47%
- Smaller benefits were recorded compared to the Australian Dollar (AUD): +0.19% and New Zealand Dollar (NZD): +0.18%.
This move up for the dollar was driven by stronger than expected US economic indicators, including the ISM Non-Manufacturing Indexwhich arose to 54.1 from 52.1and the JOLTS Job Openingswhich increased to 8.098 millionexceeding predictions of 7.7 million. Treasury yields moved higher in response, with the 10-year yield climbing to 4.689% (+7.3 bps), reflecting investors' expectations of long-term economic stability.
Federal Reserve Statement:
Official Fed Thomas Barkin highlighted the need for businesses to adapt to changes in tariffs and reaffirmed the central bank's commitment to Inflation target 2%.. Barkin also pointed out that price pressures are still rising, suggesting that policy tightening may need to continue.
The US Treasury auctioned $38B of average-demand 10-year notes
Similarities:
US stock indexes fell after two consecutive days of gains, led by a sharp pullback in tech stocks:
- Dow Jones: -0.42%
- S&P 500: -1.11%
- NASDAQ Composite: -1.89%
- Russell 2000: -0.74%
Sections of Nvidia has fallen 6.22%reversing earlier gains after hitting an intraday high following CEO Jensen Huang's keynote at CES 2025. The tech sell-off also saw sharp declines in other high-growth stocks, with MicroStrategy to fall 9.94% and Palantir falling 7.81%.
Pres. Trump-elect held a press conference at Mar a Lago. selections covered a number of different topics
- Interest rates are too high
- Biden's ban on offshore oil and gas drilling will be reversed
- Something to do with Canada and Mexico trade. He says; we don't need cars or milk and oil
- When asked whether he will give us military or economic coercion when he tries to gain control of Greenland, he said that he cannot be sure of either of those two.
- Calling Greenland essential to national security
- They could consider tariffs on Denmark over Greenland if they don't give up Greenland.
- Think Meta has come a long way
- He says he's fine with spending cuts. Want to see an extension of the debt ceiling.
Overview:
The day's market activity reflected a complex interplay of stronger US economic data, rising yields, and profit-taking in tech stocks. With strong dollar strength and high volatility in equities, traders are keeping a close eye on upcoming economic reports and Fed guidance.
Tomorrow the lead-up to Friday's US non-farm jobs report continues with the ADP Non-Farm employment report due at 8:15 AM ET. Expected 139K vs 146K last month. The weekly unemployment claims will be released a day early due to the day of mourning for Pres. Carter. Expected 214K vs 211K last week. The US stock market will also be closed on Thursday.
The Fed's Waller will speak at 8:30 am ET, and the minutes of the December Fed meeting (a heavy cut of 25 basis points) will be released at 2 pm ET.
