NEW YORK, New York – U.S. stocks fell Wednesday following data showing a pick up in the economy, and inflation onsolidating. Tech stocks led the way lower.
“Inflation has proven to be a little stickier than the Fed would have liked, which may give them pause with respect to cutting rates,” Scott Welch, chief investment officer at Certuity told Reuters Wednesday.
“There are questions around the effects of Trump’s stated tariff policy, which, if implemented could be pretty inflationary and so the Fed is going to have to balance itself between the economic data and the incoming administration’s policy agenda.”
All the talk around the ‘Street was about the Fed and the future of interest rate cuts, and in particular the widely anticipated December cut.
“It is a closer call than it was at the prior two policy meetings since core services inflation remains sticky and could lead some Fed officials to argue for a pause in the rate cutting cycle next month,” Kathy Bostjancic, chief economist at Nationwide told Reuters Wednesday. “We instead look for the Fed to pause the rate cuts in early 2025 to assess prospective policy changes under the second Trump administration.”
The Standard and Poor’s 500 (^GSPC) ended the session at 5,998.74, down 22.89 points or 0.38 percent, with a trading volume of 2.044 billion shares. Losses were spread across sectors, with technology and financials experiencing notable declines.
The Dow Jones Industrial Average (^DJI) also slipped, closing at 44,722.06 after shedding 138.25 points or 0.31 percent. Trading volume reached 441.491 million shares as blue-chip stocks saw a mix of moderate gains and losses.
The technology-heavy NASDAQ Composite (^IXIC) saw the steepest drop of the day among U.S. indices, losing 115.10 points to settle at 19,060.48, a decline of 0.60 percent. Trading volume was robust, with 5.02 billion shares exchanging hands, reflecting ongoing volatility in the tech sector.
Foreign Exchange Markets Sees Drop in U.S. Dollar, Spike in Japanese Yen
On Wednesday, the global foreign exchange market experienced notable movements, with the U.S. dollar showing weakness across the board, despite economicata supporting a rise. The biggest mover was the Japanese currency which jumped more than two yen. The dollar index weakened by 0.98 points, or 0.92 percent, to 106.03.
Euro / US Dollar (EUR/USD):
The euro strengthened against the U.S. dollar, rising by 0.72 percent to 1.0563.
US Dollar / Japanese Yen (USD/JPY):
The dollar fell sharply against the yen, dropping 1.40 percent to 150.93. The decline reflects increased demand for the yen amid concerns over a potential interest rate increase in December.
US Dollar / Canadian Dollar (USD/CAD):
The pair edged slightly lower, with the greenback weakening by 0.16 percent to 1.4030.
British Pound / US Dollar (GBP/USD):
The pound rose significantly, climbing 0.83 percent to settle at 1.2672.
US Dollar / Swiss Franc (USD/CHF):
The dollar slipped 0.53 percent against the Swiss franc to 0.8816.
Australian Dollar / US Dollar (AUD/USD):
The Australian dollar posted gains of 0.32 percent, to 0.6494.
New Zealand Dollar / US Dollar (NZD/USD):
The New Zealand dollar emerged as one of the day’s strongest performers, rising by 1.07 percent to 0.5895.
Market Summary
The U.S. dollar’s broad retreat highlights the influence of diverse regional factors on global currency dynamics. Strength in the Japanese yen and commodity-linked currencies like the Australian and New Zealand dollars contrasts with declines in the greenback against traditional safe-haven and European currencies.
As traders look ahead, macroeconomic data and potential policy actions will likely shape the next moves in foreign exchange markets.
Global Markets See Mixed Performance as Regional Trends Shape Indices
On Wednesday, major stock indices around the globe closed with a blend of gains and losses, reflecting divergent regional economic and market trends.
CANADA
- Canada’s S&P/TSX Composite Index (^GSPTSE) defied the trend, rising by 83.16 points or 0.33 percent to close at 25,488.30. Trading volume on the index stood at 200.782 million shares, driven by strength in energy and materials stocks.
UNITED KINGDOM
- FTSE 100 (UK): Closed up by 16.14 points, or 0.20 percent, at 8,274.75.
EUROPE
- DAX (Germany): Fell by 34.23 points, or 0.18 percent, to end at 19,261.75.
- CAC 40 (France): Declined 51.48 points, a drop of 0.72 percent, settling at 7,143.03.
- EURO STOXX 50: Dropped by 28.84 points, or 0.61 percent, to close at 4,733.15.
- Euronext 100: Down by 6.90 points, shedding 0.48 percent, to end at 1,421.22.
- BEL 20 (Belgium): Rose by 26.64 points, or 0.64 percent, to 4,213.77.
ASIA
- Hang Seng Index (Hong Kong): Jumped 443.93 points, an increase of 2.32 percent, to close at 19,603.13.
- SSE Composite (China): Surged 50.02 points, an increase of 1.53 percent, to 3,309.78.
- Nikkei 225 (Japan): Fell 307.03 points, or 0.80 percent, closing at 38,134.97.
- Kospi (South Korea): Dropped 17.30 points, or 0.69 percent, to 2,503.06.
- IDX Composite (Indonesia): Decreased by 68.22 points, or 0.93 percent, ending at 7,245.89.
- S&P BSE SENSEX (India): Rose by 230.02 points, or 0.29 percent, closing at 80,234.08.
- FTSE Bursa Malaysia KLCI: Added 1.10 points, or 0.07 percent, to close at 1,604.25.
OCEANIA
- S&P/ASX 200 (Australia): Gained 47.30 points, or 0.57 percent, finishing at 8,406.70.
- All Ordinaries (Australia): Increased by 47.00 points, or 0.55 percent, to end at 8,659.60.
- S&P/NZX 50 (New Zealand): Gained 99.16 points, or 0.76 percent, ending at 13,212.92.
MIDDLE EAST
Middle East markets, despite the ceasefire between Israel and Lebanon, closed in negative territory Wednesday.
- TA-125 (Israel): Declined 22.32 points, or 0.96 percent, to 2,306.52.
- EGX 30 (Egypt): Declined 438.30 points, or 1.45 percent, to close at 29,846.00.
AFRICA
- Top 40 (South Africa): Fell 25.16 points, or 0.55 percent, to 4,523.69.
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