Wall Street has registered more purchases this Wednesday (Dow Jones:+0.67%; S&P500:+0.69%; Nasdaq:+0.82%) as the grows optimism with a rate cut by the Federal Reserve (Fed) at its December meeting and the market is trying to shake off fears of a artificial intelligence (AI) bubble. Likewise, it is worth remembering that the American trading floor will remain closed on Thursday for the day of Thanksgiving and on Friday it will open only half a session for the ‘Black Friday’. «He returns to dominate the FOMO (Fear Of Missing Out), especially if the fear of technology is being lost and given that November may have already incorporated enough corrections and too fast if in the end it turns out that there are no overvaluations evident. We insist that There are none in listed technology, although there could be some in unlisted technology. (OpenIA, Anthropic, Mistral, x-IA, etc.) if the IPOs were carried out at recklessly ambitious prices,» they assess at Bankinter.
WITH AN EYE ON THE FED…
The Fed has also become a catalyst for the market, especially after the statements of some of its members showing in favor of a December rate cut. This has raised the probability that the central bank will lower rates by 25 basis points in its last meeting of the year to 84%, according to CME’s FedWatch tool, compared to 50% just a week ago. Similarly, for Jose Francisco Ibáñez Sagristà, equity analyst at Tressis, the words of Scott Bessentwho has suggested that President Trump could announce before Christmas to the person who will succeed Jerome Powell. «His statements reinforce the idea that the Fed is going through a transition phase: several of its members have adopted a more accommodative tone in recent days and the market is beginning to contemplate that the change in the presidency of the central bank could be clarified sooner than expected. It is a factor to monitor for Decemberbecause any clue about the future Fed will directly influence the path of rates,» he remarks. Precisely, in this session, the organization has published the Beige Bookin which it offers more information about the country’s economic activity and expectations, and notes that «employment decreased slightly.»
…AND UKRAINE
But investors also do not lose sight of the geopolitical situationespecially in a context in which USA and Ukraine advance in a new peace plan to end the war with Russia. «These days it has positively influenced the tone of the market based on expectations about a 28-point proposal that is known to have been originally prepared by Russia and that the US presented as its own to start negotiating whatever because Trump is in a hurry to achieve peace in a conflict in which he has committed a not insignificant part of his eccentric political capital«, they point out in Bankinter. «Right now the state of the situation is unknown because 9 of the 28 points have been withdrawn and Trump seems to correct himself by accepting that tomorrow, Thursday will not be the deadline, as he had flatly said. The point is that Russia will not accept anything that distances itself from its maximalist demands.so expectations about an agreement will be diluted in the coming hours/days,» these experts add.
ECONOMY AND OTHER MARKETS
Regarding the macro agenda, this Wednesday the weekly unemployment claimswhich have fallen to 216,000, compared to the 225,000 expected by the consensus. In other markets, oil West Texas has risen 1.23% ($58.67) and the Brent has added 0.99% ($63.10). For his part, the euro has appreciated 0.19% ($1.1592), and the ounce of gold has gained 0.57% ($4,163). Furthermore, the 10-year American bond yield has moderated to 3.992% and the bitcoin has gained 3.32% ($89,912).
