Renewed Interest Rate Uncertainty May Lead To Extended Pullback On Wall Street

[ADVFN]( [[Global Email] World Daily Markets Bulletin]( Wednesday, 03 January 2024 09:00:23 [ADVFN Twitter]( [Monitor]( [Quote]( [Charts]( [News]( [Toplists]( [Boards]( Breaking: Price of Gold & Silver set to EXPLODE in 2023! Read Now... Attention investors and retirement savers...Investment experts and even mainstream news publications are predicting a windfall for gold and silver prices in 2023! This could be the year we see the value of precious metals like gold and silver EXPLODE! You won't want to miss out! [Reserve Your FREE Gold & Silver Kit Today!]( --------------------------------------------------------------- US Market Bitcoin [Bitcoin]( DAX [DAX]( Dow Jones [Dow Jones]( Nasdaq [Nasdaq]( The major U.S. index futures are currently pointing to a lower open on Wednesday, with stocks likely to see further downside after starting the new year on a downbeat note. Concerns investors have become too optimistic about the likelihood of near-term interest rate cuts may weigh on the markets ahead of the release of the minutes of the Federal Reserve?s latest monetary policy meeting later in the day. Treasury yields are seeing further upside ahead of the release of the minutes amid worries Fed officials will signal a more cautious approach to future rate decisions. The yield on the benchmark ten-year note is moving higher for the fourth consecutive session after falling to its lowest levels in over five months a week ago. Ahead of the release of the minutes Richmond Federal Reserve Tom Barkin said the U.S. economy heading for a soft landing is ?increasingly conceivable but in no way inevitable.? ?The airport is on the horizon. But landing a plane isn?t easy, especially when the outlook is foggy, and headwinds and tailwinds can affect your course,? Barkin said in prepared remarks to the Raleigh Chamber of Commerce: Launch 2024. ?It?s easy to oversteer and do too much or understeer and do too little.? Barkin also noted the U.S. economy continues to defy expectations, suggesting consumer spending is unlikely to pull back as long as equity values are high and the labor market remains tight. ?Longer-term rates have dropped recently, which could stimulate demand in interest-sensitive sectors like housing,? Barkin said. ?While you might think this would be a first-class problem, strong demand isn?t the solution to above-target inflation. That?s why the potential for additional rate hikes remains on the table.? Stocks moved mostly lower during trading on Tuesday, extending the pullback seen in the final trading session of 2023. The Nasdaq showed a particularly steep drop, reflecting notable weakness among tech stocks. The Nasdaq plunged 245.41 points or 1.6 percent to 14,765.94, continuing to give back ground after ending last Wednesday's trading at its best closing level in almost two years. The S&P 500 also slid 27.00 points or 0.6 percent to 4,742.83. Meanwhile, the narrower Dow recovered from initial weakness and bounced back and forth across the unchanged line before closing up 25.50 points or 0.1 percent at 37,715.04. The weakness in the broader markets came as some traders continued to cash in on recent strength, particularly among technology stocks. Last year, the Nasdaq skyrocketed by 43.4 percent in 2023, while the S&P 500 soared by 24.2 percent and the Dow surged by 13.7 percent. A steep drop by shares of Apple (AAPL) also weighed on the tech sector, with the iPhone maker tumbling by 3.6 percent to its lowest closing level in well over a month. The slump by Apple comes after Barclays downgraded its rating on the company's stock to Underweight from Equal Weight. Meanwhile, some traders remained away from their desks following the New Year's Day holiday, looking ahead to the release of some key U.S. economic data in the coming days. Semiconductor stocks showed a substantial move to the downside on the day, dragging the Philadelphia Semiconductor Index down by 3.7 percent. The index continued to give back ground after reaching a record closing high last Wednesday. Considerable weakness was also visible among airline stocks, as reflected by the 2.5 percent plunge by the NYSE Arca Airline Index. Software and computer hardware stocks also saw notable weakness, contributing to the steep drop by the Nasdaq, while gold stocks also moved lower despite an uptick by the price of the precious metal. On the other hand, healthcare, pharmaceutical and biotechnology stocks saw notable strength, helping to limit the downside for the broader markets. --------------------------------------------------------------- Do you day trade? Trader Alerts streams stocks reaching new highs and lows as well as stocks breaking out of previous volume highs as they happen. It's a powerful tool for day trading ideas. [Learn More / Upgrade]( --------------------------------------------------------------- U.S. Economic Reports CADUSD [CADUSD]( Oil [Oil]( Gold [Gold]( EURUSD [EURUSD]( The Institute for Supply Management is scheduled to release its report on manufacturing activity in the month of December at 10 am ET. The ISM?s manufacturing PMI is expected to inch up to 47.1 in December from 46.7 in November, but a reading below 50 would still indicate a contraction. Also at 10 am ET, the Labor Department is due to release its report on job openings in the month of November. Job openings are expected to rise to 8.85 million in November from 8.73 million in October. The Federal Reserve is scheduled to release the minutes of its December 12-13 monetary policy meeting at 2 pm ET. --------------------------------------------------------------- [3 Tiny Stocks Primed to Explode]( The world's greatest investor ? Warren Buffett ? has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential. We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns. [Click here for full details and to join for free.]( --------------------------------------------------------------- Stocks in Focus Shares of SoFi Technologies (SOFI) are seeing significant pre-market weakness after Keefe, Bruyette & Woods downgraded its rating on the financial technology company to Underperform from Market Perform. Financial services company Charles Schwab (SCHW) may also move to the downside after Goldman Sachs downgraded its rating on the company?s stock to Neutral from Buy. On the other hand, shares of Bloomin? Brands (BLMN) are likely to see initial strength after the Outback Steakhouse parent announced the appointment of two new board members as part of an agreement with activist firm Starboard Value LP. --------------------------------------------------------------- [Sell every Stock except ONE]( Markets are down... But Jeff Clark couldn't care less because he ignores almost every stock in the market except ONE. He lives financially free trading this One Stock Once per month... [Ticker Revealed.]( --------------------------------------------------------------- Europe European stocks have moved sharply lower on Wednesday as investors look ahead to the release of Federal Reserve's December meeting minutes later in the day to gauge the interest rate trajectory. Upcoming German inflation and U.S. labor market data also remained on investors' radar. Meanwhile, Destatis reported that Germany's unemployment remained unchanged in November. The jobless rate stood at an adjusted 3.1 percent, the same as in October. The number of people out of work increased by 5,000 from the previous month to 1.36 million in November. At the same time, the unadjusted unemployment rate held steady at 3.0 percent compared to the same month last year. Elsewhere, new data from Kantar showed grocery price inflation slowed to an annual rate of 6.7 percent in December, the lowest since the beginning of 2022. Retailers enjoyed their busiest Christmas since 2019, according to the data. While the French CAC 40 Index has tumbled by 1.3 percent, the German DAX Index is down by 0.9 percent and the U.K.?s FTSE 100 Index is down by 0.5 percent. Computer chip equipment maker ASML has moved notably lower to extend declines from the previous session after the Dutch government cancelled shipments of some machines to China. Ryanair has also tumbled. The budget airline said that a number of online travel agents had stopped selling its flights in early December following legal and regulatory pressure. Wizz Air Holdings has also fallen. The budget airline said it carried 4,964,857 passengers in December 2023, an 18.8 percent increase compared to December 2022. Meanwhile, shipping firm Maersk has jumped after an announcement that it will not resume a passage through a key Red Sea strait "until further notice." Atos, a multinational information technology service and consulting company, has also risen after an announcement that it will open due diligence talks with Airbus for a potential sale of its entire big data & security or BDS unit. --------------------------------------------------------------- Do you have a full view of the market? Level 2 lets you see all of the orders to buy and sell shares, allowing you to see what is really going on in the market. If you don?t have this in your trading toolkit, you?re at a serious disadvantage. [Learn More / Upgrade]( --------------------------------------------------------------- Asia USDCAD [USDCAD]( USDEUR [USDEUR]( USDGBP [USDGBP]( USDJPY [USDJPY]( Asian stocks retreated on Wednesday as an uptick in Treasury yields amid fading optimism about early interest rate cuts triggered a sell-off in technology stocks. Traders awaited the latest Fed minutes along with U.S. labor market data this week for important clues on the economic and rate outlook. The dollar mostly held on to its gains and gold ticked higher, while oil prices steadied after sharp moves earlier in the week following attacks on vessels in the Red Sea by Houthi rebels. Japanese markets remained closed. Chinese stocks ended a choppy session slightly higher after the government ousted a top official in charge of regulating the country's gaming industry. The benchmark Shanghai Composite Index inched up 0.2 percent to 2,967.25, while Hong Kong's Hang Seng Index fell 0.9 percent, to 16,646.41 on concerns about China's economic recovery and U.S. monetary policy uncertainty. Seoul stocks tumbled as rate uncertainty gripped markets ahead of the FOMC meeting minutes. The Kospi plunged 2.3 percent to 2,607.31, snapping a four-day winning streak. Market bellwether Samsung Electronics lost 3.3 percent and No. 2 chipmaker SK Hynix slumped 3.9 percent. Battery makers LG Energy Solution and Samsung SDI declined 3-4 percent. Australian markets fell sharply in their worst session since mid-October, dragged down by banks and miners. The benchmark S&P ASX 200 Index slumped 1.4 percent to 7,523.30, while the broader All Ordinaries Index settled 1.4 percent lower at 7,757.30. Fortescue Metals Group dropped 1.9 percent after confirming the derailment of multiple ore cars in Western Australia. In New Zealand, the benchmark S&P/NZX 50 Index closed 0.3 percent lower at 11,730.13, ending a five-day winning streak. --------------------------------------------------------------- Do you day trade? Trader Alerts streams stocks reaching new highs and lows as well as stocks breaking out of previous volume highs as they happen. It's a powerful tool for day trading ideas. [Learn More / Upgrade]( --------------------------------------------------------------- Commodities Crude oil futures are climbing $0.45 to $70.83 a barrel after tumbling $1.27 to $70.38 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $2,049.90, down $23.50 compared to the previous session?s close of $2,073.40. On Tuesday, gold inched up $1.60. On the currency front, the U.S. dollar is trading at 142.86 yen compared to the 141.99 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.0925 compared to yesterday?s $1.0942. --------------------------------------------------------------- To unsubscribe from this news bulletin or edit your mailing list settings click [here](. Registered Office/Accounts Dept: Suite 27, Essex Technology Centre, The Gable, Fyfield Road, Ongar, CM5 0GA. Customer Support +1 888-992-3836. Company registered in England and Wales: Number 2374988 VAT No. GB 549 2130 49