U.S. Stocks Lack Direction After NY Fed President’s Rate Cut Comments -

U.S. Stocks Lack Direction After NY Fed President’s Rate Cut Comments

Dec 15, 2023Jeremy ParkinsonFinance0

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US stocks show little direction, with the S&P 500 and Dow Jones hovering around the flatline, while the Nasdaq gains approximately 0.2%.

NY Fed President John Williams states that the central bank is not currently discussing rate cuts, deeming it premature to consider a March interest rate cut.

Earlier in the week, the Fed indicated the potential for 75 basis points in interest rate cuts next year, with many investors anticipating the first cut as early as March.

The NY Empire State Manufacturing Index records an unexpected decline, while S&P Global PMIs continue to indicate a robust services sector but a weaker-than-expected manufacturing sector.

Stocks remain at elevated levels, with the Dow Jones reaching record highs and both the S&P 500 and Nasdaq trading near levels not seen in nearly two years.

Over the week, the S&P 500 and Nasdaq record nearly 2.5% gains, marking a seventh consecutive week of increases, while the Dow Jones adds 2.8%, marking a ninth consecutive gain.

Dollar Index:

The dollar index approaches 102.5 after NY Fed President John Williams comments that the central bank is not currently discussing rate cuts and that it’s too early to consider a March interest rate cut.

Expectations for a March rate cut decline from 75% to 65% following Williams’ remarks.

Earlier in the week, the Fed signaled the possibility of 75 basis points in interest rate cuts next year, a faster pace than previously projected in September.

Both the ECB and BOE maintain their policy rates but commit to keeping them at elevated levels to address inflation.

The euro and British pound experience the most significant selling activity against the dollar over the week.

Despite the recent gains, the dollar is down approximately 1.5% for the week.

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