23.11.2022: Wall Street wants to shrug off fears (S&P500, USD, CAD, Bitcoin).

Market participants are ready for a market buzz today. Market sentiment on Wall Street depends on a variety of factors such as a flood of macroeconomic data, escalating global risks, the Fed’s minutes, and mounting fears in the corporate sector. InstaForex analysts have prepared their market analysis and forecasts.

Despite the cautious pre-market, the benchmark stock indices closed with gains on Tuesday. Moreover, the S&P 500 closed at the strongest level since September 12.
The S&P 500 climbed to 4,003 yesterday with intraday growth of 1.36%. The Dow Jones added almost 400 points or 1.18%. The Nasdaq closed 1.36% up.
The key stock indices are trying to retain optimism in the New York pre-market, trading higher. Amid a variety of driving forces, the S&P 500 is expected to trade in the wide intraday corridor between 3,890 and 4,090.
Wall Street had a successful session on Tuesday. On the one hand, dovish comments by Fed policymakers inspire hopes for the moderation in monetary tightening in December. On the other hand, robust retail sales dampen such hopes. Besides, oil prices are developing a steady rally.
In this context, the S&P 500 closed at the highest level in the last two and half months. US retailer Best Buy dispelled fears that high inflation could be to blame for sluggish retail sales in the Christmas season.
Best Buy’s shares leapt 12.78% after the retailer had predicted a lower decline in its annual sales than in the previous forecast.
On Wednesday, futures on US stock indices traded cautiously in anticipation of the Fed’s minutes. Investors want to have a clear vision of the Fed’s agenda for monetary policy.
Investors are confused by recent remarks from FOMC members Loretta Mester and Esther George. They provided mixed comments on the further pace of rate hikes but confirmed the Fed’s commitment to its struggle against inflation.
The trading volume will go down on Thursday ahead of Thanksgiving Day which is celebrated on Friday. Wall Street will be open half of the session on Friday.
Apple shares slipped 0.7% in the pre-market because hundreds of employees jointed protests at the flagship iPhone facility in China. Some video cameras and windows were smashed.
HP shares rose 1.4% after the hardware manufacturer announced that it plans to dismiss 6,000 employees by the end of 2025 fiscal year.As for the economic calendar, the US durable goods orders increased by 1% in October from a month ago following a 0.3% rise in September. The score surpassed the forecast for a 0.4% growth.
The latest score has been the strongest one in the recent 4 months. Besides, durable goods orders excluding aircraft, which serves as a barometer of investments in equipment, climbed 0.7%, having rebounded after a 0.8% fall in September. The reading is also better than expected as economists had projected a flat figure.
Later today, investors will get to know US new home sales and the PMI by S&P Global for November. The cherry on the cake is the Fed’s minutes. Investors are braced for a volatile session. The US dollar is awaiting the Fed’s minutes in a gloomy mood. Having shed 0.3% intraday, the index again sank below 107. The intraday corridor is defined between 105.9 and 107.8 depending on the economic data and its influence on market sentiment.

According to the FedWatch Tool, the current consensus suggests a 75% probability of a rate hike by 50 basis points.

Loretta Mester also advocates for this scenario. Hence, the US dollar is losing its footing.

Apart from strong durable goods orders, the labor market logged an unexpected increase in first-time unemployment claims.

The number of Americans filing for initial unemployment benefits grew by 17,000 to 240,000 last week. It is the largest growth since August and way above the forecast for 225,000 new claims. This sharp increase indicates that the labor market is cooling down because the Federal Reserve has raised the official funds rate by 375 basis points since March.

A lot of data is still ahead capable of boosting optimism and pessimism.

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00:00 INTRO
00:42 S&P500
01:22 USA
02:02 QUOTES
04:31 USDX
05:58 USD | CAD
06:22 OIL
07:29 BTC | USD


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