Wall Street has closed with purchases this Wednesday, with the S&P 500 and the Nasdaq renewing highs once again. All this, as investors focus their attention on the employment data and in the Federal Reserve (Fed). «There are signs that the market is starting to lose focus as we approach the final weeks of the year. Investors continue to blindly invest in US stocks, as post-election enthusiasm persists,» analyzes Kathleen Brooks, research director at XTB. For the expert, «positioning on Wall Street remains very one-sided. Bullish sentiment has increased since the election of Donald Trump. However, there are signs that it could be showing the first signs of wear. In the last week, momentum has faltered, which is a sign of changing leadership in the US stock market.» At the macro level, the labor market He is the great protagonist of the week. In this session, it was the turn of the private employment data prepared by the consulting firm ADP, which has shown the creation of 146,000 new jobs in November, below the 150,000 expected. Although all eyes are on him November official reportwhich will be announced on Friday, and for which the creation of 200,000 jobs is expected, after the 12,000 the previous month due to the impact of the hurricanes. This Wednesday's agenda has also included the PMI and ISM services for Novemberwhich have remained in expansion territory. All of this will be key for the Fed rate decision at its meeting on December 18 and for which the market discounts, with a probability of 73.8%, according to the CME Group's FedWatch tool, which will carry out a new cut of 25 basis points. «Soft data will have no difficulty convincing Fed doves that another 25 basis point cut is on the way this month, while a set of data that looks strong could add some suspense to the mix, but eventually, the Fed will surely cut«, assesses Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
POWELL DOES NOT DIE
In this sense, investors have closely followed the words of Jerome Powellpresident of the organization, who spoke at a symposium in New York, in which he did not give many clues about the decision of the December meeting. The head of the Fed has assured that the strength that the US economy is showing allows the body to adopt a more «cautious» approach to reducing interest rates. «We are on a path to bring rates to a more neutral level over time. The economy is strong, stronger than we thought it was going to be in September. The good news is that we can be a little more cautious when looking for the neutral type«, he detailed during a talk within the framework of the New York Times DealBook Summit.
COMPANIES AND OTHER MARKETS
At the business level, Salesforce Wall Street shoots up 10%, after exceed expectations with its quarterly results and show optimistic about prospects for Agentforceits new artificial intelligence (AI) platform. It's also news Campbell'swhich has announced the appointment of Mick Beekhuizen as new president and CEO effective February 1, 2025. He will succeed Mark Clouse, who leaves his duties at the company to become president of the Washington Commanders, an NFL team (professional American football league in the United States). In other markets, oil West Texas rises 0.47% ($70.28) and the Brent advances 0.62% ($74.03). For his part, the euro depreciates 0.20% ($1.0487), and the ounce of gold loses 0.23% ($2,674). Furthermore, the 10-year American bond yield is revalued to 4.263% and the bitcoin earn 0.81% ($96,322).