Index Update

On Wednesday, the Dow and S&P 500 rose by 0.25% and 0.16%, respectively, while the Nasdaq Composite fell by 0.06%. The bond market stabilized after a $22 billion US Treasury sale eased recent yield spikes. Ahead of Friday’s jobs report, data showed a slowdown in private-sector hiring and wage growth in December, indicating a cooling labor market. US stock markets will be closed on January 9 for a national day of mourning for former President Jimmy Carter.

Market Movers

On Wednesday, the top gainers were    Bridger Aerospace Group Holdings, Inc. (+60.96%), followed by ScanTech AI Systems Inc. (+42.20%). On the contrary,  Avadel Pharmaceuticals plc (-25.63%) and  Currenc Group Inc (-22.45%) declined the most the same day.

Macro Update - The U.S. unemployment rate fell to 4.1% in December 2024, beating expectations. The number of unemployed dropped by 235K to 6.886 million, while employment increased by 478K to 161.661 million. The labor force participation rate remained at 62.5%, and the employment-population ratio rose to 60% from 59.8%.

Commodity Update - Brent crude oil futures surged over 2%, surpassing $78.5/barrel, the highest since October, as US crude stockpiles dropped due to cold weather and reduced inventory in Cushing, Oklahoma. The global oil market tightens with supply cuts from Russia & Iran, while fears over US policy under President-elect Trump, including potential sanctions and trade conflicts, add to market concerns. Oil is on track for its 3rd consecutive weekly gain.

Futures Update

US stock futures dropped on Friday following a hotter-than-expected jobs report. The economy added 256K jobs in December, significantly surpassing forecasts of 160K, while the unemployment rate fell to 4.1%. Despite wage growth slowing to 0.3%, the data highlighted the resilience of the US labor market, reinforcing expectations that the Federal Reserve will take a cautious approach to rate cuts this year. Meanwhile, Delta Air Lines saw a nearly 8% surge in premarket trading after reporting stronger-than-expected earnings, with its CEO projecting 2025 to be the airline's best financial year. 

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After a sharp pullback on Tuesday, stocks exhibited a lack of clear direction during Wednesday's trading session. The major indices fluctuated around the break-even point throughout the day, ultimately closing mixed. The tech-oriented Nasdaq dipped 10.80 points, or 0.1 percent, to finish at 19,478.87, while the Dow climbed 106.84 points, or 0.3 percent, to reach 42,635.20. The S&P 500 gained 9.22 points, or 0.16 percent, closing at 5,918.26. From a technical standpoint, the S&P 500 is currently situated near a previous resistance level and has retraced, indicating potential consolidation and a bearish trend in the near term. The 14-period Relative Strength Index (RSI) hovers around the midpoint, reflecting a neutral market sentiment. Key levels to watch include resistance at 5,800 and support at 5,770.

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