S&P 500 Approaches 6,000 As Stocks Retreat, CAC 40 the Only Gainer Today
S&P 500 retreated lower today, approaching the 6,000 points level, which will be interesting to watch if it will turn into support, as stock markets retreat lower ahead of tomorrow’s FED rate cut.
Today’s market movements were challenging to decipher, influenced by the year-end context and anticipation of key central bank decisions. The Federal Reserve’s decision tomorrow and the Bank of Japan’s announcement shortly after are driving much of the market focus, as these are the final major tradeable events of the year.
US Stock Indices – Closing Prices
- Dow Jones Industrial Average: Declined -267.58 points (-0.61%) to close at 43,449.90.
- S&P 500: Fell -23.47 points (-0.39%) to end at 6,050.61.
- NASDAQ Index: Dropped -64.80 points (-0.32%) to finish at 20,109.06; yesterday it hit a record high.
- Russell 2000: Decreased -27.91 points (-1.18%) to settle at 2,334.08.
US stocks closed lower yesterday, extending a streak of losses driven by risk aversion following Monday’s mixed market performance. The Dow Jones Industrial Average marked its ninth consecutive losing session, the longest such streak since 1978. UnitedHealth has been a major contributor to this decline, with its stock price plunging -22.0% since December 4. Nvidia has also struggled, dropping -11.02% over the same nine-day period.
US Treasury Auction
- High Yield: 4.686%, slightly above the WI level at auction time (4.671%).
- Tail: 1.5 bps, compared to the 6-month average of 0.6 bps.
- Bid-to-Cover Ratio: 2.50x, marginally below the 6-month average of 2.57x.
- Dealers’ Share: 17.9%, higher than the 6-month average of 13.3%.
- Direct Bids (Domestic Demand): 20.1%, above the 6-month average of 15.3%.
- Indirect Bids (International Demand): 62.0%, notably lower than the 6-month average of 71.4%.
- Auction Grade: D-, indicating weak demand.
The broader market faced similar pressure, with the S&P 500 and Nasdaq both declining. The Russell 2000, representing small-cap stocks, saw the steepest drop of -1.18%, reflecting heightened risk aversion. In Europe, market performance has been equally challenging. The STOXX 600 has erased most of its December gains, while the FTSE 100 has fallen back to its levels from November 22 after four consecutive days of losses. This highlights a cautious sentiment across global markets heading into the year’s final trading sessions.
Main European Bourses – Daily Changes
- Stoxx 600: Declined -0.3%.
- German DAX: Dropped -0.3%.
- France CAC: Gained +0.2%.
- UK FTSE 100: Fell -0.6%.
- Spain IBEX: Declined significantly by -1.4%.
- Italy FTSE MIB: Down -1.1%.
Despite flat interest rates, USD/JPY saw a decline, hinting at some risk aversion. Broader market sentiment showed signs of caution, with many noting concerns about market breadth and overall sentiment. The Dow extended its losing streak to nine consecutive days, while the “Magnificent 7” stocks added substantial downward pressure on the markets.
S&P Index Live Chart
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