Market dynamics in the moment (futures):
📉 S&P 500: -0.07%
📉 Nasdaq: -0.12%
📈 Dow Jones: +0.01%
🌕 Gold: +0.67% ($1779)
⚫️ Brent oil: +0.05% ($86.70)
🇺 US Treasuries 10 years: +0.14% (3.616%/year).
U.S. stock index futures are trading flat. Yesterday the major indices finished the day on the plus side, with the S&P 500 up 3.09%, the Dow Jones up 2.18% and the Nasdaq up 4.41%. The stock market reacted with strong growth on the positive macrostatistics publication as well as on the statements of the Federal Reserve System chief Jerome Powell. Asian stock market demonstrated positive dynamics.
The Fed chief confirmed market expectations that the next interest rate hike in December may be in smaller increments than previously predicted.
💎”The time to moderate the pace of rate hikes may come at the next meeting,” Powell said during his remarks.
Powell also stressed that monetary policy is likely to remain restrictive for some time until there are real signs of progress toward lower inflation. In addition, the Fed chief made it clear that the issue of a rate cut was irrelevant at the moment.
Also yesterday, labor market statistics were released. According to ADP, the number of nonfarm payrolls rose by 127K in November, against forecasts of 200K. The growth rate of employment was the lowest since January of this year.
The number of open jobs in the labor market (JOLTS) for October fell by 353,000 to 10.334 million. The drop in the figure signals a definite decline in labor demand.
💎”Powell needs to keep making tough statements, but he has given Wall Street hope. Everyone knows it takes time for policy tightening to begin to pay off, and we are already seeing some cooling of the labor market,” said David Russell, an analyst at TradeStation Group.
According to the second estimate, U.S. GDP grew by 2.9% QoQ in Q3, rather than the 2.6% previously reported. Economists had expected the figure to be revised up only to 2.7%.
Publication of economic data today:
– Core Personal Consumption Expenditures Price Index (October)
– U.S. Manufacturing PMI (November)
– Initial jobless claims number