Image Source : Krish Capital Pty Ltd

Index Update - On Friday, the S&P 500 closed mostly flat, while the Nasdaq gained 0.1%. The Dow dropped 86 points, extending its losing streak to seven sessions, the longest since 2020. The broader market showed mixed results amid concerns over the Fed’s policy and economic conditions.

Market Movers: Major tech losses, including Nvidia (-2.2%), Meta (-1.6%), and Amazon (-0.6%), weighed on the market, but Tesla surged 4.3%, closing at a record high of $436.23. Broadcom soared 24.4%, hitting a $1 trillion market cap after a 220% increase in AI-related revenue. This lifted semiconductor stocks like Marvell (+10.8%) and Taiwan Semiconductor (+5%).

Commodities Update :  WTI crude oil futures dropped below $70.5 per barrel on Monday, following a 6% rally last week driven by tighter supply expectations and China’s economic stimulus plans. Meanwhile, US natural gas futures sank to $3.15 per MMBtu, pressured by reduced demand forecasts and rising domestic supply. Gold traded above $2,650 per ounce, bolstered by safe-haven demand amid geopolitical tensions and anticipation of a Fed rate cut. Silver held around $30.5 per ounce, weighed down by weaker demand signals from China and scaling back of rate cut expectations for 2024

Futures Update - Wall Street is trading marginally higher ahead of the final Federal Reserve meeting of the year, with limited range expected. US stock futures are cautiously up, with Dow futures flat, S&P 500 futures rising 0.1%, and Nasdaq 100 futures gaining 0.1%. The Dow's 2% loss last week marked its longest losing streak since April. All eyes are on the Fed, expected to ease policy, while MicroStrategy joins the Nasdaq 100.

Macro Update: Economic data signals a weak Chinese recovery, while Bitcoin hits a new record high amid talk of a strategic reserve. The highlight of the week is the Federal Reserve's final meeting of the year on Wednesday, with a 25bps rate cut widely expected. Investors are focusing on any guidance for further cuts in 2025, as the Fed’s updated projections may signal a slower pace of easing. Goldman Sachs now expects the Fed to hold rates in January, with cuts likely in March, June, and September 2025. The terminal rate for the current cycle is forecast to be slightly higher at 3.5%-3.75%

After an unsuccessful attempt to maintain an early upward momentum, stocks exhibited a lack of clear direction during Friday's trading session. The major indices fluctuated around the flat line, ultimately finishing the day with mixed results. The S&P 500 slipped by 0.17 points, or less than a tenth of a percent, closing at 6,051.08, whereas the tech-heavy Nasdaq rose by 23.88 points, or 0.1 percent, to finish at 19,926.72. From a technical perspective, the S&P 500 is currently positioned within an upward trend channel, indicating the possibility of further gains. Moreover, the 14-period Relative Strength Index (RSI) remains in a favorable range. Noteworthy levels to monitor include resistance at 6,125 and support at 5,990.

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