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Japanese Minister of Economy, Trade and Industry Minoru Jonouchi: I will attend todays Bank of Japan policy meeting.1. US crude oil futures closed up 2.42% at $96.68 per barrel; Brent crude oil futures rose 2.86% to $101.97 per barrel. The US-Iran negotiations have reached a complete stalemate, oil transport through the Strait of Hormuz remains restricted, preventing large quantities of oil from entering the international market. Iranian crude oil exports have essentially halted, and rising expectations of Middle East production cuts have pushed up oil prices due to geopolitical risk premiums. 2. International precious metals futures generally closed lower. COMEX gold futures fell 0.91% to $4697.70 per ounce, and COMEX silver futures fell 1.25% to $75.46 per ounce. The market awaits policy signals from the Federal Reserves interest rate meeting, with a cautious sentiment. Although geopolitical risk aversion and central bank gold purchases supported prices, short-term policy expectations weighed on the market. 3. Most London base metals fell. LME nickel rose 0.66% to $19,140.0/ton, LME lead rose 0.05% to $1,963.5/ton, LME aluminum fell 0.50% to $3,573.0/ton, LME copper fell 0.62% to $13,226.5/ton, LME tin fell 1.77% to $49,440.0/ton, and LME zinc fell 2.23% to $3,395.0/ton. 4. The three major U.S. stock indexes closed mixed. The Dow Jones Industrial Average fell 0.13% to 49,167.79 points, the S&P 500 rose 0.12% to 7,173.91 points, and the Nasdaq Composite rose 0.2% to 24,887.1 points. The S&P 500 and Nasdaq both hit new closing highs. McDonalds fell more than 3%, and Walmart fell more than 1%, leading the Dow Jones decline. The Wind US Tech Giants Index rose 0.97%, with Nvidia up 4% and Google up over 1%. The Nasdaq China Golden Dragon Index fell 1.2%, with Atour and iQiyi both falling over 5%. Market focus remains on the stalled Iran peace talks and the situation in the Strait of Hormuz. The Federal Reserve will hold its monetary policy meeting this week, and several tech giants will release their earnings reports. European stock indices closed slightly lower: the German DAX fell 0.19% to 24083.53 points, the French CAC40 fell 0.19% to 8141.92 points, and the UK FTSE 100 fell 0.56% to 10321.09 points. Middle East geopolitical tensions pushed up oil prices, exacerbating inflation concerns; a decline in Eurozone PMIs indicated economic weakness; and rising risk aversion led to the stock market decline.Japans unemployment rate in March was 2.7%, below the expected 2.60% and the previous reading of 2.60%.Japans job opening to job seeker ratio was 1.18 in March, in line with expectations and down from 1.19 in the previous month.Japans March unemployment rate will be released in ten minutes.

S&P 500 Rebounds As Tech Stocks Rally

Skylar Shaw

Dec 30, 2022 15:35


Stocks Rise Following Yesterday's Sell

As tech companies resumed upward momentum, the S&P 500 rallied in the direction of the barrier at 3860. The NASDAQ Composite, which is heavily weighted toward technology, increased 2.6% today.


Tax-loss selling most certainly caused yesterday's decline. Because deals take longer to settle, December 28 was the last day for tax-loss harvesting. Speculative traders took advantage of the fact that tax-loss sellers were not present today to drive stock prices upward.


The Initial Jobless Claims data, which matched analyst expectations, may have given markets further boost.


The recovery today is widespread, and all market categories are heading upward. Tech companies, which are making gains as Treasury rates retreat from recent highs, are driving the recovery.


Tesla, which was able to escape its annual lows, is among the notable gainers. The price of Tesla shares has increased by more than 5% so far today. Ford and General Motors were able to develop significant upward momentum as well.


Interestingly, despite declines in the oil and natural gas markets, energy equities are also rising. The market is in a positive mindset, and traders are eager to purchase equities across all industries. It should be mentioned that the trading volume is low since many traders have departed for holiday.


Traders who are more long-term oriented should not pay too much attention to market movements in the last weeks of the year.