04.12.202515:44 Forex Analysis & Reviews: US Market News Digest for December 4

S&P 500 and Nasdaq rise on expectations of Fed rate cut

Yesterday, stock indices closed higher. The S&P 500 rose by 0.30%, while the Nasdaq 100 added 0.17%. The Dow Jones Industrial Average strengthened by 0.86%. On Thursday, Japanese assets were in focus in the Asian markets. The country's indices led after data from the US increased the likelihood of a Federal Reserve interest rate cut next week, and the sale of 30-year government bonds saw the highest demand since 2019.

In the currency market, the US dollar remained stable after falling by 0.4% during the previous session when US Treasury yields rose, lowering the yield on two-year bonds to approximately 3.48%. The Indian rupee fell to a record low against the dollar as sentiment remained weak amid delays in finalizing a trade agreement with the United States. Follow the link for more details.

US equity market loses leaders

Inflation is slowing, interest rates are decreasing, and corporate profits are rising. What could be better for the S&P 500? The US stock market aims to restore its upward trend. However, its distinguishing feature at the start of winter is the absence of leaders. The diversification of investment portfolios and a move away from tech stocks have become the hallmark of recent weeks.

The increase in business activity in the services sector to a 9-month high was perceived by investors as a sign of optimism due to the end of the shutdown, which, by the way, could begin again at the end of January. On the other hand, the ADP reported a reduction of 32,000 jobs in the private sector in November. The data indicated a labor market cooling and brought the Fed closer to an interest rate cut in December. Follow the link for more details.

US stock indices see moderate gains amid weak ADP employment data

On Wednesday, US stock indices strengthened amid weak ADP employment data, which fueled expectations of imminent policy easing by the Fed. An unexpected reduction in jobs in the private sector again showed signs of a weakening labor market and bolstered forecasts for a Fed rate cut as early as next week. The Dow Jones climbed by 0.9%, adding over 400 points, the S&P 500 increased by 0.3%, while the Nasdaq rose by 0.2%.

In the cryptocurrency market, Bitcoin attempted to recover after a sharp decline, recently dropping below $83,000. On Wednesday, BTC rose to a two-week high, exceeding $93,000, but part of the gain was later lost. Caution in the tech sector intensified after Microsoft's stock fell by 2.5% amid reports of reduced quotas for AI solution sales. Follow the link for more details.