A good day for the tech sector
The S&P 500 index gained on Thursday finally ending five-session losing skid, as technology shares led a broad-based recovery. Investors saw a jump in weekly unemployment claims as a warning that the rate of interest rate hikes may soon moderate.
Wall Street’s major indexes have been under pressure in recent days, with the benchmark S&P500 index losing 3.6% so far in December. All eleven main S&P 500 sectors advanced, with technology companies leading the way with a 1.8% increase.
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The majority of mega-cap technology and growth firms, including Apple Inc, Nvidia, and Amazon.com Inc., increased between 1.6% and 5%. Despite Exxon Mobil Corp rising 1.2% after announcing an expansion of its $30 billion share repurchase program, the energy index was little changed.
The number of Americans making claims for unemployment benefits grew marginally last week. The number of Americans on the unemployment rolls reached a 10-month high at the end of November.
Dollar’s pairs take back a little ground
The US stock market’s improvement impacted the US dollar. The US dollar ended the day with losses versus most of its major competitors. Dollar lost most ground early in the US session then consolidated for the remainder of the day. Investors also considered the likelihood that the Fed’s restrictive monetary policy may hint a recession.
Volatility dropped in the absence of top-tier data. Next week, the US Federal Reserve, the European Central Bank, the Swiss National Bank, and the Bank of England will offer updates on monetary policy, which should bring nice action.
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The EUR/USD trades at about 1.0540, while GBP/USD has reached 1.2235. AUD/USD has risen for the second day in a row and is currently trading at 06760. The USD/JPY exchange rate saw low volatility and closed the day at about 136.70 with no change. The USD/CHF exchange rate has fallen to 0.9360.
The oil and gold market ends mostly unchanged
Treasury yields increased as investors awaited next week’s inflation data and Federal Reserve meeting. In recent weeks, global bond yields, which move inversely to price, have declined. This is due to fears that weaker growth or recession will halt the rise in interest rates.
The yield on 10-year Treasury notes increased by 8.5 basis points to 3.493%. On the other side of the ocean, the yield on 10-year German bonds increased by 2.6 basis points to 1.845%.
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Shiny metals ended without huge changes. Gold futures in the United States closed up 0.2% at $1,801.50 per ounce. Silver followed its big yellow brother in the green zone, closing with a 1.5% increase in price at $23.255 Copper closed also in the green 0.5%
Expectations that a crucial Canada-to-US pipeline will return to operation following a breach and increase oil supplies weighed on the market. At a time when global economic slowdowns lowered energy demand US oil futures declined 55 cents to close at $71.46 a barrel. Brent futures declined more than 1% to $76