The performance of Wall Street stocks was mixed at market open as the holiday-shortened trading week began, interrupting a three-week winning streak fueled by optimism regarding a possible decrease in U.S. interest-rate hikes.
The S&P 500 (^GSPC) and the Dow Jones Industrial Average (^DJI) hovered just below the flatline, while the tech-focused Nasdaq Composite (^IXIC) managed to eke out a modest gain of approximately 0.2%.
Investors have been buoyed by signs of moderating inflation, fostering the belief that the Federal Reserve may have concluded its rate-raising cycle. The prevailing sentiment among market participants is now focused on the prospect of a rate cut, with traders factoring in a 30% likelihood of such a move as early as March.
The upcoming release of minutes from the Federal Reserve’s latest meeting on Tuesday is expected to fuel the ongoing debate on the timing of a potential rate cut. However, with minimal economic data scheduled and the impending Thanksgiving holiday on Thursday, trading activity is anticipated to remain subdued.
All eyes are set on Nvidia’s financial results, also slated for release on Tuesday. The chipmaker’s previous earnings report triggered a broad market surge, driven by the burgeoning excitement surrounding artificial intelligence (AI).
The AI trend continued to exert its influence on Monday, as Microsoft shares saw a nearly 2% rise in pre-market trading. This uptick followed the announcement that OpenAI, a prominent advocate of AI development, had appointed Sam Altman to lead a new AI research team. Over the weekend, efforts to reinstate Altman as the CEO of ChatGPT, the maker of the popular language model, proved unsuccessful. Consequently, the company’s board named former Twitch chief Emmett Shear as his replacement.
In the commodities market, oil prices experienced an uptick amid reports suggesting that Saudi Arabia and its allies might announce a further cut in production during the upcoming OPEC+ meeting this weekend. Additionally, a weakening dollar, which reduces costs for holders of other currencies, was cited as a contributing factor to the rise in oil prices. Both West Texas Intermediate crude (CL=F) and Brent crude (BZ=F) registered gains close to 2%.
In conclusion, the fluctuating performance of Wall Street stocks at the commencement of the holiday-shortened trading week reflects the intricate interplay of market forces, with sentiments swayed by expectations surrounding U.S. interest-rate adjustments. Throughout the week, investors will vigilantly observe unfolding developments across various fronts, encompassing potential changes in Federal Reserve policy to corporate earnings releases, all of which have the potential to significantly influence market sentiment as Thanksgiving approaches.
Source: Yahoo Finance
