Nasdaq Index, Dow Jones, S&P 500 News: Investors Await Fed’s Signal Amid Inflation Uncertainty

Highlights

• CPI rose 3.1%, in line with forecasts.
• Investors await Fed’s rate decision.
• Oracle, Hasbro reflect broader market trends.

Wall Street Weighs Inflation and Fed’s Next Move

As 2023 draws to a close, Wall Street remains vigilant, with S&P 500 futures showing little change. Investors are closely analyzing the latest inflation data for clues on the Federal Reserve’s next steps in monetary policy, amidst a backdrop of a resilient stock market.

Inflation Trends in Focus

November’s Consumer Price Index (CPI) rose by 3.1% year-over-year, matching economists’ predictions. The modest 0.1% month-over-month increase and a parallel rise in core inflation underline the Federal Reserve’s significant role in shaping investor expectations and market strategies.

Anticipation Ahead of Fed Decision

The stability in the 10-year U.S. Treasury yield reflects market response to these inflation figures. All eyes are now on the Federal Reserve’s final policy meeting of the year, with expectations set for unchanged interest rates. Investors are keenly awaiting indications of potential rate cuts and the Fed’s economic forecast, including recession risks and the possibility of a soft landing.

Oracle and Hasbro Navigate Market Challenges

Oracle Corporation faced a setback with its share prices dipping due to second-quarter revenue shortfalls. Despite growth in net income and revenue, the company’s future revenue projections and segment performances fell below market expectations. Concurrently, Hasbro’s announcement of significant layoffs, amid declining sales, signals a broader trend in the retail sector adapting to post-pandemic market realities.

Bullish or Bearish? Market Awaits Fed’s Signal

The market’s recent positive trajectory, fueled by lower interest rates and pause expectations in Fed’s rate hikes, is at a pivotal moment. The upcoming Federal Reserve announcement is anticipated to maintain the current rate, but the market is poised for signals on future rate cuts. With the CNBC Fed Survey suggesting mid-2024 for potential rate reductions, the market outlook remains cautiously optimistic, hovering between bullish and bearish expectations.

Technical Analysis

The E-mini S&P 500 Index’s current daily price of 4672.50, slightly below its previous close of 4678.50, indicates a marginal decline. This price is comfortably above both the 200-day and 50-day moving averages, set at 4430.25 and 4469.50 respectively, suggesting a bullish trend.

The index is currently trading above the main support level of 4494.00 and well above the minor support of 4562.50. Without clear resistance levels, the upward momentum seems less restrained.

These indicators, combined with the asset’s position relative to its moving averages, reflect a bullish market sentiment. The slight dip from the previous day’s close doesn’t significantly alter this outlook, as the price remains robustly positioned above key technical levels.