Image Souce: Krish Capital Pty Ltd

Index Update

Despite the pullback in Futures, Wall Street had posted gains on Tuesday, driven by strong performance in technology stocks, with both the S&P 500 and the Dow Jones Industrial Average reaching new record closing highs. Trading volumes were expected to remain low on Wednesday, as markets prepared for the Thanksgiving holiday and the early close on Black Friday.

Market Movers

On Tuesday, the top gainers were NRG Energy Inc(+10.11%), followed by Contellation Energy Corporation. (+7.15%) and The JM Smucker Company (+5.9%). On the contrary, Super Micro Computer Inc (-10.36%) and General Motor Company (-8.99%) declined the most the same day.

Commodities Update

Crude prices rose slightly on Wednesday as traders assessed the potential impact of a ceasefire agreement between Israel and Hezbollah, as well as an unexpected significant draw in US oil inventories. By 04:00 ET, US crude futures (WTI) increased by 0.5% to $69.08 per barrel, while Brent crude slipped 0.3% to $72.54 per barrel. Both benchmarks had closed lower on Tuesday after Israel and Hezbollah agreed to a ceasefire, which could ease concerns about disruptions to oil supplies from the Middle East. Additionally, data from the American Petroleum Institute showed a nearly 6 million barrel reduction in US oil inventories for the week ending November 22, surpassing expectations for a small increase.

Macro Update

In October 2024, the US personal consumption expenditure (PCE) price index is expected to rise by 0.2% month-over-month, consistent with September's increase, while the core PCE index, which excludes food and energy, is projected to rise by 0.3%, matching the previous month. The annual PCE inflation rate is anticipated to edge up to 2.3%, from a 2021 low of 2.1% in September, while the annual core PCE inflation is forecasted to increase to 2.8%, up from 2.7%. These annual increases are likely influenced by base effects from the previous year, although the broader trend of slowing disinflation is expected to continue. In September, the Federal Reserve revised its economic projections, lowering its annual PCE and core PCE inflation estimates to 2.3% and 2.6%, respectively, from the June forecasts of 2.6% and 2.8%.

Futures Update

US stock index futures edged lower on Wednesday following a positive session on Wall Street, as investors awaited key inflation data that could influence the outlook for interest rates. At 05:30 ET (10:30 GMT), Dow Jones Futures were down by 45 points (0.1%), S&P 500 Futures fell by 10 points (0.2%), and Nasdaq 100 Futures dropped 60 points (0.3%).

On Wednesday, November 27th, Bitcoin traded at $93,600, up 1.82% from the previous session. 

After showing a mixed performance earlier in the session, all major U.S. stock indexes climbed throughout the trading day on Tuesday. The Dow bounced back from initial weaknesses to close at a new record high. The S&P 500 also increased by 34.26 points, or 0.57 percent, finishing at a record closing high of 6,021.64. Meanwhile, the Nasdaq gained 119.46 points, or 0.6 percent, closing at 19,174.30. From a technical perspective, the S&P 500 is currently positioned within a rising channel, suggesting the possibility of further upward movement. Additionally, the 14-period Relative Strength Index (RSI) remains in positive territory. Key levels to monitor include resistance at 6066 and support at 5,927.

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