Stocks exhibited a mixed performance at market open as the holiday-shortened week commenced, following three consecutive weeks of gains driven by optimism surrounding a potential slowdown in U.S. interest-rate hikes.
The S&P 500 (^GSPC) and the Dow Jones Industrial Average (^DJI) hovered just below the flatline, while the Nasdaq Composite (^IXIC), with its tech-heavy constituents, showed a modest gain of approximately 0.2%.
The prolonged positive momentum in stocks has been sustained by indications of tamer inflation, fostering a belief in the market that the Federal Reserve may have concluded its tightening cycle. Investor attention has now shifted to speculation about the timing of a potential rate cut, with traders factoring in a 30% likelihood of such a move as early as March.
Market participants eagerly anticipate insights from the Federal Reserve’s last meeting, the minutes of which are slated for release on Tuesday. However, with a relatively sparse economic calendar and the impending closure of markets on Thursday for Thanksgiving, trading activity may remain subdued.
All eyes are on Nvidia’s financial results, also scheduled for release on Tuesday. The chipmaker’s previous earnings report triggered a broad surge in stocks, riding the wave of the artificial intelligence (AI) hype cycle.
The influence of AI remained palpable on Monday, as Microsoft shares experienced a nearly 2% rise in pre-market trading. This uptick followed the announcement that Sam Altman, a key figure in the development of ChatGPT and backed by OpenAI, would lead a new AI research team at Microsoft. Over the weekend, attempts to reinstate Altman as the CEO of ChatGPT proved unsuccessful, leading to the appointment of former Twitch chief Emmett Shear as his replacement.
Turning to commodities, oil prices saw an uptick amid reports suggesting that Saudi Arabia and its allies might announce an additional cut in production during the upcoming OPEC+ meeting over the weekend. The decline in the dollar, reducing costs for holders of other currencies, also contributed to the upward movement in oil prices. West Texas Intermediate crude (CL=F) and Brent crude (BZ=F) both experienced gains close to 2%.
In conclusion, the diverse performance of Wall Street stocks at the outset of the holiday-shortened week underscores the ongoing market dynamics influenced by speculation surrounding U.S. interest-rate adjustments. As the week unfolds, market participants will closely monitor developments on multiple fronts, including the release of Federal Reserve minutes, Nvidia’s financial results, and the OPEC+ meeting, all of which have the potential to influence market sentiment in the days ahead.
Source: Yahoo Finance
