Mixed Market Sentiment and Economic Data Shape Trading Ahead of Holidays

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Index Update

US markets faced mixed sentiment as consumer mood unexpectedly declined for the first time in three months, raising concerns about the economic outlook. Investors are focused on the Federal Reserve's 2025 policy, with expectations of fewer rate cuts, while soft US PCE data has eased inflation worries. Trading is subdued ahead of the holiday, with an early NYSE close. Notable stock movements include Honda Motor Co.'s US shares rising 13% after announcing plans to acquire Nissan Motor Co., and Rumble stock gaining 8% following a $775 million investment from Tether, highlighting interest in digital finance and media innovation.

Market Movers

On Tuesday, the top gainers were Carbon Revolution Public Limited Company (+149.36%), followed by Rezolve AI Limited (+10.25%). On the contrary, Abpro Holdings, Inc (-7.86%) and  Jiayin Group Inc. (-7.31%) declined the most the same day.

Commodities Update

Brent crude rose toward $73 per barrel on Tuesday amid thin trading, supported by strong US economic data and a 2.6% rise in India's November oil imports. However, concerns over potential oversupply, a stronger US dollar, and Sinopec’s projection of China’s oil consumption peaking by 2027 kept gains in check. European supply fears eased as the Druzhba pipeline resumed operations after technical issues.

Macro Update

On Tuesday, the yield on the 10-year US Treasury note remained around 4.59%, near a seven-month high, as markets evaluated potential rate cuts by the Fed in 2025. Weaker economic data, including a drop in US consumer confidence and concerns over the fiscal outlook under President-elect Donald Trump, led to expectations of fewer rate cuts next year. The Conference Board's consumer confidence index for December fell to 104.7, its lowest in three months, while durable goods orders dropped 1.1% in November, the third decline in four months.           

Futures Update

US stock futures edged lower on Tuesday following a tech and semiconductor-driven rally that boosted Wall Street earlier in Christmas week.

On Tuesday, December 24th, Bitcoin traded at $94,011, down by $631 (0.67%) from the previous session. Over the past four weeks, Bitcoin decreased by 1.06%, while its price increased by 115.98% over the last 12 months.

After starting the session with uncertainty, stocks generally gained ground throughout Monday's trading. The major indexes built on the significant gains from Friday, helping to counteract the sell-off experienced last Wednesday. The Nasdaq rose 192.29 points, or 1.0 percent, to close at 19,764.89. Meanwhile, the S&P 500 increased by 43.24 points, or 0.73 percent, finishing at 5,974.08, and the S&P 500 gained 66.69 points, or 0.2 percent, closing at 42,906.95. From a technical perspective, the S&P 500 remains within an upward trend channel, indicating potential for continued increases. The 14-period Relative Strength Index (RSI) is also in a favorable range. Key levels to monitor include resistance at 6,080 and support at 5,930.