Investors remained cautious ahead of employment data due this week that could alter expectations for interest rate cuts.
November thus represented the best month for the 30-stock Dow since October 2022. Both the S&P 500 and the Nasdaq Composite are enjoying their biggest monthly gains since July 2022.
New York Stock Exchange
Wall Street closed on Monday lower, as investors remained cautious prior to the employment data that will be published this week and that could alter expectations of interest rate cuts on the part of the Federal Reserve early next year.
He S&P 500 retreated, with mega-cap stocks Microsoft, Manzana, NVIDIA and amazon pressured downwards by the increase in Treasury bond yieldswhich made stock returns less attractive.
In the last weeks, Wall Street recovered driven by some solid business profits and the expectations that Fed ended its rate hike campaign.
According to unofficial data, the Dow Jones Industrial Average lost 0.1% to 36,204.31 units; the index S&P 500 it gave up 0.5% to 4,569.78 units; and the Nasdaq Composite it subtracted 0.8% to 14,185.49 units.
He S&P 500 recorded its highest close of the year on Friday, after statements by the president of the Fed, Jerome Powellthat reinforced the opinion that rates are at maximum.
Wall Street: the data analyzed by the market
On Monday, the variable income was pressured by the increase in US Treasury bond yieldwhich made the return of the Actions.
The main macroeconomic focus this week will be the report of non-farm payrolls of November on Friday, which can help investors assess the likely path of the interest rates of the Federal Reserveas well as the potential for a “soft landing,” in which the US central bank manages to control the inflation while avoiding a recession.
Traders have priced in the likelihood that the Fed will keep rates unchanged next week, with a 58% betting on cuts starting in March 2024depending on the tool FedWatch from CME Group. However, some analysts warned that markets have been too quick to price in lower rates..
Added to Monday’s falls were renewed fears about a expansion of the war between Israel and Gaza after a attack on three commercial ships in the southern Red Sea.
Source: Ambito
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