Dow -0,61%, S&P 500 -0,39%, Nasdaq -0,32%, Russell -1,18%, SOX -1,64%, Eurostoxx -0,09%, SMI +0,33%.
Ninth consecutive session of decline yesterday for the Dow Jones index, this has not happened since 1978, just like the negative breadth for twelve days in fact. Since its peak on December 5, the Dow has returned 3.5%, nothing too serious knowing that the index is still up 15.2% this year. Note in passing that it lands on its 50-day moving average at the bell. The Nasdaq100 (NDX) also gives up a little ground but manages to defend the level of 22,000 points at the close. Volatility has regained some color over the past two days, the VIX has gained an additional 8% and returned to 15.87, this is by far not yet the Holy Grail for structurers but we will keep an eye on the SPX volatility index. The American indices seem to lack the fuel to continue their crazy rise. Now, this fuel has a name: Fed. And that’s good, the United States Federal Reserve announces its decision on rates this evening at 8 p.m., everyone in the trading rooms expects it to lower them by 25 basis points, on the other hand for the rest it is the most total artistic blur, we will therefore listen carefully to what Jerome Powell has to say on this subject, the equation of the moment is not easy, the return of who you know to business on the 20 next January makes things happen many lines.
The US 10-year yield fell a bit, this morning to 4.39%, the dollar and the euro are no longer apart, the EUR/USD pair is moving to 1.0501 this morning, it is probably waiting for the Fed, like everything the world, to envisage the continuation of events.
Nvidia drops 1.2%, shares of the leading artificial intelligence chip designer entered correction territory on Monday. Wall Street is waiting for evidence of how quickly Nvidia can increase sales of its Blackwell artificial intelligence chips. Even after its recent drop, Nvidia remains up 163% this year. Broadcom lost 3.9%. The stock closed at a record high Monday, jumping 11% to $250. Tesla rose again, by 3.6% to reach $479.87, which constitutes a new closing record. Wedbush raises its price target on the stock to $515, a Wall Street high, from $400. Pfizer rises 4.7% after the drug giant confirmed its 2024 forecast and said it expects 2025 revenues of between $61 billion and $64 billion, compared to analysts’ expectations of $63.3 billion dollars. The company adds that it is working on several cost reduction programs.
In France, this doesn’t really work out. Moody’s downgrades major banks, mechanical consequence of the lowering of the country’s sovereign rating last Friday. The Banque de France has just revised downwards its growth forecasts for the years to come, the government has not yet been formed, the 10-year OAT-Bund spread widens to 80 basis points.
On today’s macroeconomic menu, British inflation (output slightly below expectations), European inflation (11:00 a.m.) and building permits in the United States (2:30 p.m.) will precede the Fed’s decision on its rates at 8:00 p.m.
Vivendi leaves the CAC 40 index, replaced by Bureau Veritas after the split. Moody’s lowers the outlook on the debt of seven French banks (including BNP Paribas, Crédit Agricole but not Société Générale) after France’s rating was lowered. Boeing announces the resumption of production of the B767 and B777. Mastercard will repurchase up to $12 billion in shares. Eli Lilly has received approval from China’s medical regulator for its Alzheimer’s disease drug, Kisunla. Honda Motor and Nissan begin merger talks, Nissan stock soars.
This night and this morning in Asia, the indices are trading in scattered order. Tokyo lost 0.72% at the bell, Hong Kong rose 0.94%, Shanghai advanced 0.62%, Seoul rose 1.12% and the Nifty50 fell 0.6%. The future SPX recovers 8 points and Europe opens around balance.
All hands on deck at 8 p.m. for the Fed announcement!
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