U.S. stocks paused their seven-day rally, which had propelled the S&P 500 to record highs. Despite a solid economic showing, market sentiment was cautious ahead of a key inflation report. Treasury yields dropped across the board, and the dollar saw a decline.
In the latest economic update, the U.S. economy grew at a steady 2.8% annualized rate in Q3, fueled by strong consumer spending and consistent business investment. Initial jobless claims remained low, suggesting a resilient job market. However, some market observers, like Ian Lyngen from BMO Capital Markets, noted that the data didn’t significantly move the needle as investors awaited the core personal consumption expenditures (PCE) report.
The S&P 500 fell by 0.1%, the Nasdaq 100 dipped 0.4%, and the Dow Jones Industrial Average showed little movement. In the bond market, the 10-year Treasury yield dropped 6 basis points to 4.24%, while the Bloomberg Dollar Spot Index slid by 0.6%.
Corporate results were mixed. Dell Technologies and HP signaled a slow recovery in the PC market, while CrowdStrike’s weaker earnings forecast dampened investor sentiment. On the other hand, Urban Outfitters exceeded sales expectations, and Nordstrom raised its sales outlook, which could prompt further action from the company’s board regarding its future.
In other significant news, asset management giants BlackRock, Vanguard, and State Street face a high-profile antitrust lawsuit, accusing them of inflating electricity prices via investments, adding to the ESG industry’s controversies. Additionally, Symbotic, a warehouse automation company, revised its revenue forecast downward due to accounting issues.
As we head into the holiday season, key events include Eurozone consumer confidence data and U.S. Thanksgiving holiday, with retail data expected to influence the markets.
Market Recap:
S&P 500: -0.1%
Nasdaq 100: -0.4%
Dow Jones: Unchanged
10-year Treasury yields: 4.24%
Bloomberg Dollar Spot Index: -0.6%
WTI crude: $68.63
Gold: $2,651.54 per ounce
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