Market Commentary-December 7

Following sharply at the beginning of the trading session on Thursday, stock market exhibited a substantial come back throughout the trading day. The key averages rebounded well off their lows of the day, with the technology stocks roaring into positive territory.

The DJI index dropped nearly 800 points to its lowest level within intraday in more than a 30 days, however, finished the day lower by just 79 points or 0.3% at 24947. The Nasdaq index went up about 30 points or 0.4% to just over 7188. The S&P500 surrounded slightly over 4 points or 0.2% to 2696. 

The recovery on Wall Street has been partly caused by a report coming from the WSJ (Wall Street Journal) suggesting Fed authorities are thinking about signaling a "wait-and-see mentality" following a probable rate of interest hike later on this month.

Quoting latest interviews as well as open public statements, the WSJ said Federal Reserve officials continue to believe rates will move vastly higher next year; however they are allegedly starting  - to be less sure how quickly they'll want to act or just how far they'll need to go.

Traders and investors were likewise gone bargain hunting following an early on sell-off pushed by doubt concerning the possibility of a long-term tariff trade deal between the America and China following the arrest of a Huawei CFO Meng Wanzhou executive.

This politically motivated occurrence added onto uncertainty regarding whether the three-month tariff trade truce arranged by Chinese President Xi Jinping and President Trump will provide the two sides ample time to attain a long-term deal.

Traders and investors were likewise responding to a slew of US economic numbers, as many financial reports initially due to be launch on Wednesday were deferred as a result of former President Bush's funeral.

Crude oil for January 2019 delivery contract tumbled $1.40 to $51.50 per barrel, as Organization of the Petroleum Exporting Countries apparently opted for production reduction however postponed an official statement of precisely how much it will cut.

In offshore trading,  markets throughout the Asia region went drastically lower in the course of trading on Thursday. Japan's Nikkei225 Index dropped  1.9%, while HK's Hang Seng Index plunged by 2.5%.

The main Eurozone markets likewise showed considerable movements to the downside on the day. As the German DAX Index nosedived by 3.5%, the UK's FTSE100 Index and French CAC40 Index plunged by 3.2% and 3.3%, respectively.

In the bond market segment, US Treasuries retracted well off their highs levels of the trading session, however, continued to be in firm positive territory. For that reason, the yield within the ten-year note, which usually moves opposite of its price action, decreased by 4.8bp close 2.88%.

Trading today (Friday) is most likely to be motivated by a response to the US Labor Department's closely seen monthly unemployment numbers for last month.

SPX (S&P500) Chart


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