NEW YORK (Dow Jones) — After the course fireworks on Thursday, Wall Street also went up at the end of the week with the indices – albeit at a significantly slower pace. Hopes of a less rigorous rate hike path by the US Federal Reserve continued to support sentiment. Investors drew new confidence from consumer prices announced on Thursday, the rise in which slowed more in October than economists and stock market participants had expected. This was accompanied by good news from China. There, the strict pandemic restrictions are to be relaxed somewhat, which has been speculated about for a while.
“Weaker than expected inflation has buoyed markets and investors have rushed to invest some of the money they had on the sidelines,” said Richard Hunter, head of markets at Interactive Investor.
Investors now expect the Fed to slow the pace of rate hikes to just 50 basis points at its December meeting after four consecutive 75 basis point hikes. In addition, Fed Funds futures assume that the federal funds rate will peak in the first quarter of 2023.
The Dow Jones index recovered from initial losses and gained 0.1 percent to 33,748 points. The day before he had recorded the largest daily increase in over two years. The S&P 500 rose 0.9 percent and the tech-heavy Nasdaq Composite, which is considered particularly interest-rate sensitive, climbed another 1.9 percent. According to initial information, there were 2,129 (Thursday: 2,902) price winners and 1,049 (375) price losers on the Nyse. 90 (112) titles closed unchanged.
The economic data of the day, on the other hand, was weak. US consumer sentiment weakened significantly more than expected in November. US consumers play a key role in the US economy because around 70 percent of gross domestic product depends on private consumption.
Dollar still under pressure – oil prices rise sharply
The dollar, which had tumbled following the inflation data and falling market interest rates, continued to depreciate. With the prospect of the Chinese economy opening up again and supply bottlenecks easing as a result, the US currency was not in demand in its function as a safe haven. The dollar index fell another 1.7 percent. The euro, which was trading below par before inflation data was released on Thursday, rose to $1.0357.
The good news from China helped oil prices to rise significantly. WTI and Brent prices climbed up to 2.9 percent. However, much of the upward trend at the end of the week came from the renewed weakness of the dollar, according to Schneider Electric analyst Robbie Fraser. On a weekly basis, WTI lost 3.9 percent.
The price of gold was further supported by bond yields, which had fallen sharply the previous day. The renewed weakness of the dollar also helped. The price of the troy ounce rose by 0.7 percent.
While stocks rallied on Thursday, bond market yields plummeted as rate hike expectations faded. Bond trading was suspended on Friday for the Veterans Day holiday.
Intel stock climbs despite downgrade
Company news from the USA in the form of quarterly figures came mainly from the second and third row. Among others, online legal technology company Legalzoom.com raised its revenue outlook, which saw the share price climb 10.4 percent.
Intel stock recovered from initial losses and gained as technology stocks continued to climb. The titles gained 2.3 percent. The fact that JP Morgan resumed monitoring underweight stocks weighed only at the open. The price had already jumped by over 8 percent the day before. In the Dow, the papers from Microsoft (+1.7%) continued to rise.
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INDEX last +/-% absolute +/-% YTD
DJIA 33,747.86 +0.1% 32.49 -7.1%
S&P 500 3,992.93 +0.9% 36.56 -16.2%
Nasdaq Comp. 11,323.33 +1.9% 209.18 -27.6%
Nasdaq-100 11,817.01 +1.8% 211.05 -27.6%
FOREX last +/- % Fri 8:32am Thu 5:15pm % YTD
EUR/USD 1.0357 +1.5% 1.0237 1.0153 -8.9%
EUR/JPY 143.63 -0.6% 144.54 144.02 +9.7%
EUR/CHF 0.9744 -0.9% 0.9850 1.0327 -6.1%
EUR/GBP 0.8745 +0.3% 0.8725 0.8710 +4.1%
USD/JPY 138.69 -2.1% 141.20 141.93 +20.5%
GBP/USD 1.1844 +1.3% 1.1732 1.1655 -12.5%
USD/CNH (Offshore) 7.0895 -0.9% 7.0883 7.1819 +11.6%
Bitcoin
BTC/USD 16,603.49 -6.6% 17,369.45 17,633.47 -64.1%
CRUDE OIL last VT settlem. +/- % +/- USD % YTD
WTI/Nymex 88.94 86.47 +2.9% +2.47 +27.4%
Brent/ICE 96.01 93.67 +2.5% +2.34 +30.9%
GAS VT Settlem. +/- EUR
Dutch TTF 98.50 113.45 -13.2% -14.95 +66.6%
METALS last day before +/- % +/- USD % YTD
Gold (Spot) 1,767.82 1,754.95 +0.7% +12.87 -3.4%
Silver (Spot) 21.66 21.78 -0.5% -0.11 -7.1%
Platinum (Spot) 1,029.65 1,040.30 -1.0% -10.65 +6.1%
Copper Future 3.94 3.76 +4.9% +0.19 -10.6%
YTD relative to previous day’s close
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(END) Dow Jones Newswires
November 11, 2022 16:14 ET (21:14 GMT)
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