The DOW JONES index rises 0.30% to 47,252.11 points. NVIDIA leads the advances today, with an increase of 2.51%, compared to Microsoft’s 1.35% increase. On the declining side, Merck&Co fell 0.88% and Salesforce fell 0.65%.
The S&P 500 advanced 0.40% to 6,793.09 points, while the Nasdaq rose 0.52% to 25,144.58 points.
Wall Street is coming off a very positive day, allowing the three major indices to chain three days of gains in the face of renewed expectations that the Federal Reserve will cut interest rates at its December meeting. The DOW JONES added 1.43%, while the S&P 500 advanced 0.91% and the technology Nasdaq rose 0.67%.
Despite the rebound in recent days, November has been a difficult month for Wall Street given the slowdown that technological stocks linked to AI have experienced due to fears about high valuations. As of Tuesday’s close, the S&P 500 is down about 1.1% in November, while the Nasdaq Compositewith a strong technological presence, has lost almost 3%. The DOW JONES has fallen about 1% so far this month.
It must be taken into account that Tomorrow the market will be closed for Thanksgivingwhile on Friday (Black Friday) it will only hold half a session.
Much of the reaction in recent days has come from the expectations that the Federal Reserve will cut interest rates at its December meeting. If just a week ago the market gave a probability of just 30% to a cut of 25 percentage points, it is currently around 83%, according to the CME Group’s Fedwatch tool.
Investors are also closely following the pools regarding the new president of the Federal Reserve. Treasury Secretary Scott Bessent told the CNBC Yesterday Tuesday there is a “very good chance” that Trump “will make an announcement before Christmas” about who will succeed Jerome Powell. According to the Bloomberg agency, the big favorite right now is the director of the White House National Economic Council, Kevin Hassett. Hassett is seen as someone most likely to push for lower rates.
Today the market will also have a good handful of macroeconomic references to take into account, starting with the initial applications for unemployment benefits: The number of people who requested aid stood at 216,000 last weekbelow the 225,000 expected. The previous week’s figure was revised up to 222,000, compared to a previous estimate of 220,000. The four-week moving average of new claims, which is considered a more reliable indication of labor market trends as it reduces spikes in volatility, fell to 223,750.
The evolution index of the durable goods orders, up 0.5% in September compared to the previous month, which exceeds the 0.3% that the market had expected. The August figure was revised upwards, from 2.9% to 3.0%.
Alphabet, from maximum to maximum; other protagonists
In the business field, Alphabet is one of the biggest names on Wall Street. The company behind Google and YouTube closed yesterday in new all-time highsthe thirteenth so far in November, the third in a row and the fourth in the last five days. The company, which rises more than 90% in the last six monthshas received a new boost after learning that Meta is studying using the company’s artificial intelligence chips.
Almost flat price for HP in the New York morning. The company has managed to beat market expectations with its latest quarterly report, but the figures are overshadowed by the announcement of a job cut of up to 10% of the workforce and disappointing forecasts. The maker of computers and copiers will cut between 4,000 and 6,000 jobs as it steps up the adoption of artificial intelligence. CEO Enrique Lores says the initiative will ultimately generate $1 billion in annualized gross savings over the next three years.
Urban Outfitters soars 12.3% at the opening of Wall Street after presenting its third quarter results. The company earned $1.28 per share, beating analysts’ estimate of $1.20 per share. Urban’s revenue for the period amounted to $1.53 billion, also exceeding analysts’ expectations of $1.47 billion.
Dell Technologies rises 5% in the New York morning. The company predicts sales in the fourth quarter of 31.5 billion dollars, well above the expected 27.59 billion by analysts. Earnings per share will be $3.50 per share, compared to the expected $3.21. These forecasts put in the background worse-than-expected accounts in the third quarter, which resulted in earnings per share of $2.59 and revenues of $2.47 billion.
Deere & Co falls 3.7% despite posting fiscal fourth-quarter results that beat estimates. The agricultural machinery maker has put earnings of $3.93 per share on revenue of $10.58 billion on the table. Analysts had anticipated earnings per share of $3.85 per share and revenue of $9.85 billion.
In the analysts’ recommendations, Goldman Sachs gives a boost to Broadcom while waiting for the technology company to present its results on December 11. Analyst James Schneider recommends ‘buy’ the chipmaker and raises the price target from $380 to $435 per share, with an upside potential of 13% compared to Tuesday’s close.
In raw materials markets, oil prices remain under pressure after hitting one-month lows yesterday, and while investors remain focused on talks to end the war in Ukraine. US West Texas futures rose 0.07% to $58.15 per barrel, while international benchmark Brent crude fell 0.40% to $57.88.
The euro is down 0.12% against the dollar, with the exchange rate at $1.1556 for each single currency.