On Monday, Dec. 1, U.S. equities ended the day mixed, with the Dow Jones Industrial Average slightly up 0.3%, the S&P 500 flat and the Nasdaq composite down 0.4%.
In the technology sector, Nvidia agreed to buy $2 billion in tools and chips from Synopsys, a software company for chip design, strengthening its artificial intelligence design partnership and securing its supply chain.
In China, the Purchasing Managers Index fell to 49.2, signaling contraction.
Industrial output rose, but retail sales fell, showing soft consumer demand amid structural issues like weak household income, youth unemployment and deflation.
The S&P 500, the Dow and Nasdaq all ended modestly higher on Tuesday, Dec. 2, as investors priced in growing expectations of a near-term rate cut by the Federal Reserve.
Japanese government bond yields surged to new highs following hawkish comments from the Bank of Japan, as investors priced in the possibility of rising domestic rates.
Japanese investors typically borrow cheaply in yen and buy higher-yielding U.S. Treasurys. However, when Japanese yields rise, U.S. bonds become less attractive, potentially reducing Japanese demand and even prompting capital to shift back home.
U.S. equities were mixed Wednesday, Dec. 3, with the S&P 500 flat, the Nasdaq slightly lower and the Dow edging modestly higher.
ADP data showed the private sector shed 32,000 jobs in November, marking the steepest drop in years and strengthening expectations that the Fed will move forward with another rate cut next week.
Bitcoin recovered slightly after Monday’s sharp losses. Gains remain limited amid concerns that rising Japanese bond yields may encourage Japanese investors to repatriate funds, potentially weighing on crypto.
Gold and silver slipped in early trading, pulling back from Monday’s record highs as traders priced in next week’s Fed cut and monitored supply tightness in precious metals.
U.S. markets were mostly flat: S&P 500 gained 0.1%, the Nasdaq increased 0.2% and the Dow lost 0.1%, all still hovering near record highs. The Chinese yuan strengthened again today, continuing its steady appreciation against the U.S. dollar.
A softer U.S. dollar drove the move after U.S. jobless claims hit a three-year low, boosting expectations for earlier Fed cuts, prompting investors toward emerging market currencies like the yuan. At the same time, China is trying to slow the pace of appreciation to protect exports, which is why the PBOC has been setting weaker-than-expected daily fixes.
On Friday, Dec. 5, U.S. markets ticked up: the S&P 500 rose 0.2%, the Dow 0.2% and the Nasdaq 0.3%, as investors remain optimistic ahead of a likely rate cut by the Fed.
Netflix’s acquisition of Warner Bros. Discovery’s studio and streaming assets for roughly $82.7 billion gives it control over intellectual property like HBO, Harry Potter and DC.
