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In a holiday-shortened session, stock markets experienced minimal fluctuations, while Treasuries declined, signaling a potential stall in the global bonds rally that marked this month. The S&P 500 closed nearly unchanged at 1 p.m. in New York, securing its fourth consecutive week of gains. The Wall Street fear gauge, known as the VIX, dropped to 12.46, reaching its lowest point since January 2020. Cryptocurrency-linked shares saw a rally as Bitcoin rebounded, while Nvidia Corp. faced a decline following reports of a delayed launch of an artificial-intelligence chip in China. Ten-year US yields approached 4.5%.
Bank of America Corp.’s Michael Hartnett reported a significant influx of investors into equities, marking the fastest pace in almost two years, driven by increasing bets on peak interest rates.
Global stock funds witnessed inflows of around $40 billion in the two weeks through Nov. 21, according to Hartnett, citing EPFR data. Despite this, cash funds remained the preferred choice with additions of nearly $1.2 trillion in 2023, compared to $143 billion into equities. Bond funds, on the other hand, experienced overall outflows.
“We had a nice bounce off of an oversold condition at a seasonally appropriate time,” noted Steve Sosnick at Interactive Brokers. However, concerns were raised about the market’s dependence on a rapid easing cycle, potentially requiring a more challenging economic environment than anticipated.
In economic news, a survey from S&P Global revealed a decline in employment at US service providers and manufacturers in November, the first since mid-2020, attributed to tepid demand and elevated costs.
The decline in Treasuries followed a slide in European bonds, driven by concerns about increasing supply. Germany’s decision to suspend a constitutional limit on new borrowing contributed to this, following a ruling by the nation’s top court.
Looking at corporate highlights, Macy’s Inc. reported a successful online performance during Thanksgiving, while iRobot Corp. surged on news of European Union regulators planning to clear its billion-dollar merger proposal from Amazon.com Inc. Electric-vehicle startup Fisker Inc. experienced a boost after filing delayed third-quarter results and implementing strategic shifts for improved delivery pace in the US and Europe.
Next week’s earnings reports from Zscaler Inc., Crowdstrike Holdings Inc., Salesforce Inc., and Dell Technologies Inc. are anticipated to shed light on businesses prioritizing cybersecurity and potential impacts on sales growth amid tightening overall corporate expenditure.
In global news, OPEC+ is nearing a resolution of a dispute over output quotas, leading to the postponement of a crucial meeting. The group is reviewing demands placed on African members by a previous deal.
Market Movements:
Stocks:
- S&P 500: Little changed
- Nasdaq 100: Fell 0.1%
- Dow Jones Industrial Average: Rose 0.3%
- MSCI World index: Rose 0.1%
Currencies:
- Bloomberg Dollar Spot Index: Fell 0.3%
- Euro: Rose 0.3% to $1.0941
- British Pound: Rose 0.6% to $1.2607
- Japanese Yen: Little changed at 149.52 per dollar
Cryptocurrencies:
- Bitcoin: Rose 1.7% to $37,873.5
- Ether: Rose 1.7% to $2,105.02
Bonds:
- Yield on 10-year Treasuries: Advanced six basis points to 4.47%
- Germany’s 10-year yield: Advanced two basis points to 2.64%
- Britain’s 10-year yield: Advanced three basis points to 4.28%
Commodities:
- West Texas Intermediate crude: Fell 1.5% to $75.92 a barrel
- Spot gold: Rose 0.5% to $2,001.39 an ounce
