Fed Rate Cut Expectations Boost U.S. Stocks – Market Rebound and Key Data Analysis

© Reuters. Overnight U.S. stocks | Chip stocks help three major stock indexes rebound, data strengthens expectations of Fed rate cut

Zhitong Finance APP learned that the three major U.S. stock indexes closed higher on Thursday, partially reversing the losses suffered on Wednesday. The data released on Thursday brought another good news about the cooling of U.S. inflation. The annualized growth rate of the core PCE price index in the current quarter did not stabilize at the previous value of 2.3% as expected, but slowed to the Fed’s target of 2.0%, the highest level in three years. Minimum growth rate. Inflation data strengthened market expectations for the Federal Reserve to cut interest rates next year, helping U.S. stocks rebound.

【US stocks】As of the close, the Dow rose 322.35 points, or 0.87%, to 37404.35 points; the Nasdaq rose 185.92 points, or 1.26%, to 14963.87 points; the S&P 500 rose 48.40 points, or 1.03%, to 4746.75 points. The chip stock index closed up 2.8%, outperforming the market and approaching all-time highs. Micron (MU.US) hit a new high in the past two years after the financial report; Tesla (TSLA.US) rose 3%, leading blue-chip technology stocks.

【European stocks】Major European stock indexes fell. The European Stoxx 50 index fell by 0.20%, the German DAX index fell by 0.27%, the British FTSE 100 index fell by 0..27%, and the French CAC40 index fell by 0.16%.

[Asia-Pacific Stock Market]The Nikkei 225 Index fell 1.59%, South Korea’s KOSPI Index fell 0.55%, Indonesia’s Jakarta Composite Index fell 0.14%, and Vietnam’s VN30 Index rose 0.15%.

【Foreign Exchange】The U.S. dollar index DXY, which measures a basket of six major currencies, fell to 101.773 after the close, down nearly 0.6% on the day.

【Cryptocurrency】Bitcoin closed above $43,800, rising less than 1% in the last 24 hours; Ethereum rose 2.35% to $2,243.54.

【gold】COMEX February gold futures closed up 0.18% at $2,051.3 per ounce.

【crude】Crude oil ended a three-day winning streak and closed down for the first time this week. WTI February crude oil futures closed down 0.44% at $73.89/barrel; Brent February crude oil futures closed down 0.39% at $79.70/barrel.

【Metal】London metals were mixed, with Lun copper up 0.19%, Lun nickel up 0.27%, Lun zinc down 0.49%, and Lun aluminum down 0.41%.

【Macro news】

The revised final value of U.S. economic growth in the third quarter dropped to 4.9%.The final revised data released by the U.S. Department of Commerce on the 21st showed that the U.S. real gross domestic product (GDP) in the third quarter of 2023 grew by 4.9% on an annual basis, a decrease of 0.3 percentage points from the previously released revised data. Data show that personal consumption expenditures, which account for about 70% of the U.S. economy, grew by 3.1% in the third quarter, a decrease of 0.5 percentage points from the previous data. Non-residential fixed asset investment, which reflects the investment status of enterprises, was increased by 0.1 percentage points to an increase of 1.4%.

The U.S. PCE price index cooled, with the core PCE price index falling to 2%.Data show that the final value of the annualized quarterly rate of the U.S. PCE price index in the third quarter was 2.6%, lower than the revised value of 2.8% and the initial value of 2.9%; the final value of the annualized quarterly rate of the U.S. core PCE price index in the third quarter was 2%. It was lower than the revised value of 2.3% and the initial value of 2.4%.

The number of initial jobless claims in the United States last week was lower than expected, and the labor market remains resilient.Data released by the U.S. Department of Labor on Thursday showed that 205,000 people filed for unemployment benefits in the week ended December 16, compared with expectations of 215,000 and the previous value of 202,000. In the United States, 1.865 million people continued to apply for unemployment benefits in the week ending December 9, compared with the expected 1.88 million people and the previous value of 1.876 million. The number of Americans filing new claims for unemployment benefits rose less than expected last week and remained close to historic lows, a sign that the labor market remains resilient as companies seek to retain employees.

Angola withdraws from OPEC due to dissatisfaction with oil production cuts.Angola announced its withdrawal from OPEC on Thursday after 16 years as a member of the organization. Angola has rejected production cuts proposed by OPEC leaders to reflect the country’s dwindling oil production capacity. Angola’s withdrawal will reduce the number of OPEC members to 12. Led by Saudi Arabia, the group and its allies have been reining in supplies to prop up flagging oil prices. Several other member states have withdrawn from the organization in recent years for different reasons, including Qatar, Indonesia and, most recently, Ecuador.

[Individual stock news]

Nike (NKE.US) reported lower-than-expected revenue and weak latest guidance, and fell more than 6% after the market closed.Data shows that Nike (NKE.US) Q2 revenue was US$13.39 billion, a year-on-year increase of about 1%, and market expectations were US$13.43 billion. Net profit was US$1.58 billion, compared with US$1.33 billion in the same period last year, and earnings per share were US$1.03, compared with US$0.85 in the same period last year, and market expectations were US$0.85. The company outlined plans to cut costs by about $2 billion over the next three years and warned that its revenue outlook would be “softer” in the second half of the fiscal year.

KMX.US’ third-quarter profit exceeded expectations, and used car pricing was strong.Chemax reported adjusted earnings of 52 cents per share, higher than analysts’ average estimate of 42 cents and 24 cents in the same period last year. Third-quarter revenue of $6.15 billion was slightly below analysts’ expectations of $6.29 billion.

Tesla (TSLA.US) Cybertruck mass production may be delayed.Tesla’s Cybertruck mass production plan may be forced to be postponed because 4680 battery production is said to only meet 10% of its demand. Multiple insiders pointed out that a major bottleneck in the mass production of Cybertruck is that the production speed of its 4680 battery cannot keep up. Because Tesla encountered trouble when using new dry coating technology to produce 4680 batteries. There is no problem with dry coating technology for anodes. The problem lies in the production of cathodes, which are the most expensive battery components.

2023-12-21 23:25:00
#U.S #stocks #overnight #Chip #stocks #helped #major #stock #indexes #rebound #data #strengthened #expectations #Federal #Reserve #interest #rate #cut #Provider #Zhitong #Finance