No trend at the opening, no trend at mid-session and no trend at the close: the 'algorithmic straitjacket' has literally frozen the scores... and the 5% since November 6 is fully preserved... pending new catalysts (perhaps a 25Pt cut in the Fed's key rate).

What resilience on Wall Street, despite the pressure on rates and the publication of the latest US inflation data, which showed a slight acceleration to +2.6% y/y.
The Dow Jones advanced +0.1%, the S&P500 ended in the green (symbolically for +0.02%), the Nasdaq shed -0.25% and the Wilshire-5000 dropped a tiny -0.07% to 60,210pts.
Note the spectacular reversal in the 'Small Caps' during the session: the Russell-2000 advanced +0.9% to 2,417Pts at around 4.45pm... and ended at the opposite end of the spectrum, with -0.9% to 2,369.

It's worth noting the resilience of US indices in view of the US interest-rate markets, with T-Bonds rising above Tuesday's 4.435% to 4.45% and the '30-yr' tightening +3.3Pts to 4.610%.
It's not clear whether this is linked to the CPI: according to the Labor Department, inflation rose by 0.2% 'sequentially' in October 2024 (compared with September).
Excluding energy (-4.9%) and food (+2.1%), two traditionally volatile categories, the underlying annual inflation rate came out at 3.3% last month, a level also in line with economists' forecasts (on a sequential basis, CPI in 'core' data rose by 0.3%).

This suggests that the markets are not worried about growth prospects, but rather adapting to a new reality", say Danske Bank analysts.


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