stories on Nostr: Moody's Rating Outlook Cut Dampens US Stocks as Traders Remain Cautious ( #e8e58338 , ...
Moody's Rating Outlook Cut Dampens US Stocks as Traders Remain Cautious ( #e8e58338 , v0.26)
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US stock futures indicate a lower open as Moody's rating outlook cut dampens risk appetite. Traders are cautious ahead of key market-moving events, including speeches by Federal Reserve officials and inflation reports. Despite some setbacks, stocks ended the previous week in the green, with the Nasdaq Composite and S&P 500 reaching their highest levels since September. Small-cap stocks experienced selling pressure. The economic calendar for the week includes important data releases such as consumer price and producer price inflation reports, retail sales report, and manufacturing surveys. Asian stocks ended the session with mixed results.
The stock market rallied last week, with the S&P 500, Dow Jones, and Nasdaq all closing higher, driven by strong performance in technology shares. Despite the credit rating downgrade by Moody's and concerns about inflation, the market remained steady. The 10-year U.S. Treasury bond yields stayed at the top of the range since November 3, boosting expectations for growth-dependent stocks, particularly in the technology sector. Market volatility was influenced by comments from Fed officials and the upcoming meeting between U.S. and Chinese presidents. The release of inflation metrics this week will provide further clarity on monetary policy and set the tone for the next Federal Open Market Committee meeting.
Asian stocks also rose, following the positive momentum from Wall Street's rally. The Nikkei in Japan rose 0.46%, with chip-related stocks providing the biggest support. The Taiwan Weighted Index rose 1.17%, and the Hang Seng Index in Hong Kong rose 0.49% due to strong performance in technology stocks. However, mainland China blue chips fell slightly, and the Australian resource-heavy index fell 0.13%. Analysts believe that the stock market may have peaked, as the Treasury market has entered a pause and there is limited room for Treasury yields to fall further. The market shrugged off the credit rating downgrade, and the focus is now on upcoming economic data, including US consumer price and retail sales readings.
Crude oil prices fell due to concerns about slowing growth in the US and China. Brent crude futures for January delivery fell 0.4% to $81.08 a barrel, while West Texas Intermediate crude futures for December delivery fell 0.5% to $76.82 a barrel. Despite the fall, both benchmarks had risen about 2% on Friday due to Iraq's support for the oil production cuts implemented by OPEC+.
The stock market rally in Asia, driven by the Fed outlook and the calming of bond yields, is in contrast to the credit rating downgrade by Moody's. The focus remains on economic data and the performance of growth-dependent stocks, particularly in the technology sector. Crude oil prices fell due to demand concerns, while the Treasury market entered a pause. The stock market may have peaked, as there is limited room for Treasury yields to fall further. The market remains optimistic despite the credit rating downgrade, and the focus is now on upcoming economic data and OPEC+ oil production cuts.
#Moody's #USstocks #riskappetite #creditrating #inflation #Treasuryyields #technologysector #economicdata #OPEC+
References:
- Investopedia: https://www.investopedia.com/dow-jones-today-11132023-8400895
US stock futures indicate a lower open as Moody's rating outlook cut dampens risk appetite. Traders are cautious ahead of key market-moving events, including speeches by Federal Reserve officials and inflation reports. Despite some setbacks, stocks ended the previous week in the green, with the Nasdaq Composite and S&P 500 reaching their highest levels since September. Small-cap stocks experienced selling pressure. The economic calendar for the week includes important data releases such as consumer price and producer price inflation reports, retail sales report, and manufacturing surveys. Asian stocks ended the session with mixed results.
The stock market rallied last week, with the S&P 500, Dow Jones, and Nasdaq all closing higher, driven by strong performance in technology shares. Despite the credit rating downgrade by Moody's and concerns about inflation, the market remained steady. The 10-year U.S. Treasury bond yields stayed at the top of the range since November 3, boosting expectations for growth-dependent stocks, particularly in the technology sector. Market volatility was influenced by comments from Fed officials and the upcoming meeting between U.S. and Chinese presidents. The release of inflation metrics this week will provide further clarity on monetary policy and set the tone for the next Federal Open Market Committee meeting.
Asian stocks also rose, following the positive momentum from Wall Street's rally. The Nikkei in Japan rose 0.46%, with chip-related stocks providing the biggest support. The Taiwan Weighted Index rose 1.17%, and the Hang Seng Index in Hong Kong rose 0.49% due to strong performance in technology stocks. However, mainland China blue chips fell slightly, and the Australian resource-heavy index fell 0.13%. Analysts believe that the stock market may have peaked, as the Treasury market has entered a pause and there is limited room for Treasury yields to fall further. The market shrugged off the credit rating downgrade, and the focus is now on upcoming economic data, including US consumer price and retail sales readings.
Crude oil prices fell due to concerns about slowing growth in the US and China. Brent crude futures for January delivery fell 0.4% to $81.08 a barrel, while West Texas Intermediate crude futures for December delivery fell 0.5% to $76.82 a barrel. Despite the fall, both benchmarks had risen about 2% on Friday due to Iraq's support for the oil production cuts implemented by OPEC+.
The stock market rally in Asia, driven by the Fed outlook and the calming of bond yields, is in contrast to the credit rating downgrade by Moody's. The focus remains on economic data and the performance of growth-dependent stocks, particularly in the technology sector. Crude oil prices fell due to demand concerns, while the Treasury market entered a pause. The stock market may have peaked, as there is limited room for Treasury yields to fall further. The market remains optimistic despite the credit rating downgrade, and the focus is now on upcoming economic data and OPEC+ oil production cuts.
#Moody's #USstocks #riskappetite #creditrating #inflation #Treasuryyields #technologysector #economicdata #OPEC+
References:
- Investopedia: https://www.investopedia.com/dow-jones-today-11132023-8400895