Image Souce: Krish Capital Pty Ltd

Index Update

The S&P 500 and Nasdaq 100 closed at record highs to start December, gaining 0.2% and 1.1%, respectively, driven by large-cap tech stocks, while the Dow Jones fell 128 points. Tesla rose 3.4% after updating its "Full Self-Driving" software, and Super Micro Computer surged 28.7% after validating its financial reports. Amazon gained 1.4% due to strong Cyber Monday sales. Investors are focused on upcoming economic data, including PMIs, JOLTs, and jobs reports, while concerns about an inverted yield curve and potential Federal Reserve rate cuts persist. November saw strong gains for the S&P 500 and Dow, up 5.7% and 7.5%, respectively.

Market Movers

On Monday, the top gainers were NovoCure Limited (+40.37%), followed by Cabaletta Bio, Inc. (+31.68%) and Nebius Group N.V. (+18.51%). On the contrary, Carbon Revolution Public Limited Company (-8.33%) and Revolution Medicines, Inc (-6.21%) declined the most the same day.

Commodities Update

Brent crude futures rose to around $72.3 per barrel as traders anticipate Thursday's OPEC+ meeting, where a delay in a slight production increase is expected due to concerns of oversupply in 2024. Oil prices are supported by signs of economic recovery in China, the top oil importer, driven by higher factory activity. Meanwhile, Saudi Arabia is expected to cut crude prices for Asian buyers to a four-year low. In the Middle East, traders are monitoring tensions in Syria and renewed fighting between Israel and Hezbollah, which could impact regional supply.

Macro Update

The dollar index fell to 106.2 on Tuesday, following a 0.6% gain in the previous session, as investors awaited key US labor market reports this week, including job openings, jobless claims, and the November nonfarm payrolls report. Market attention is also on speeches from Federal Reserve officials, including Fed Chair Jerome Powell. The dollar has strengthened recently due to expectations of US economic outperformance and concerns over Trump's threat to impose 100% tariffs on BRICS countries if they try to replace the dollar as a reserve currency.

Futures Update

US stock futures held steady on Tuesday after the S&P 500 and Nasdaq Composite reached record highs, gaining 0.24% and 0.97%, respectively, while the Dow Jones fell 0.29%. Technology stocks, including Apple, Microsoft, Amazon, Meta, and Broadcom, drove the gains, while Tesla rose 3.5% after updating its "Full Self-Driving" software. Super Micro Computer surged 28.7% following validated financial reports.

Bitcoin traded at $94,893 on Tuesday, December 3rd, down by $831 or 0.87% from the previous session. Over the past four weeks, Bitcoin has declined by 39.99%, but its price has increased by 125.67% over the last 12 months.

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Technology stocks performed well on Wall Street on Monday, although the overall market showed some signs of sluggishness as investors anticipated upcoming economic data, including private and non-farm payroll reports, JOLTs, and manufacturing activity indicators expected later this week. The S&P 500 and Nasdaq both achieved record closes, finishing at 6,047.14 and 19,403.95, respectively. The S&P 500 rose by 14.75 points, or 0.24 percent, while the Nasdaq increased by 185.78 points, or 0.97 percent. From a technical standpoint, the S&P 500 is moving within a rising channel, indicating the potential for further gains. The 14-period Relative Strength Index (RSI) remains in positive territory. Key levels to keep an eye on are resistance at 6,066 and support at 5,966.

 

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