At the close, the Dow Jones fell 382.15 points, a decrease of 0.86%, to 43,910.98 points; the Nasdaq fell 17.36 points, a decrease of 0.09%, to 19,281.40 points; the S&P 500 index fell 17.36 points, a decrease of 0.29%, to 5,983.99 points.
According to the information from ZhITong Finance, on Tuesday, the three major indexes fell, with the S&P 500 index ending a four-day consecutive rise. Bitcoin briefly surpassed the $0.09 million mark. The US dollar index rose to its highest level in four months, putting pressure on gold prices to drop to a near two-month low, with COMEX gold futures for December closing down 0.53% to $2604.00 per ounce.
【US Stocks】At the close, the Dow Jones fell 382.15 points, a decrease of 0.86%, to 43,910.98 points; the Nasdaq fell 17.36 points, a decrease of 0.09%, to 19,281.40 points; the S&P 500 index fell 17.36 points, a decrease of 0.29%, to 5,983.99 points. Nvidia (NVDA.US) rose 2%, Tesla (TSLA.US) dropped 6%, Trump Media & Technology Group (DJT.US) fell 8.8%. The Nasdaq China Golden Dragon Index closed down 4.45%, Alibaba (BABA.US) fell 3.8%, XPeng (XPEV.US) fell 10%.
【European Stocks】The German DAX30 index fell 414.09 points, a decrease of 2.13%, to 19,036.75 points; the UK FTSE 100 index fell 100.11 points, a decrease of 1.23%, to 8,025.08 points; the France CAC40 index fell 199.90 points, a decrease of 2.69%, to 7,226.98 points; the Euro Stoxx 50 index fell 108.78 points, a decrease of 2.24%, to 4,745.25 points; the Spain IBEX35 index fell 207.28 points, a decrease of 1.79%, to 11,386.00 points; the Italy FTSE MIB index fell 726.83 points, a decrease of 2.12%, to 33,617.00 points.
【Asia-Pacific Stock Market】The Nikkei 225 index fell by 0.4%, Indonesia's Jakarta Composite Index rose by 0.76%, and South Korea's KOSPI index fell by 1.94%.
【Forex】The US dollar index rose to its highest level since November 2022, pushing the euro to its lowest level in a year, with other currencies also under pressure. The yen and the Canadian dollar also fell, heading towards key psychological levels. Since Trump's potential re-election and the prospect of the Republican Party sweeping both houses of Congress again, strategists on Wall Street have unanimously adopted a bullish view on the US dollar. According to recent strategy reports, JPMorgan, Goldman Sachs, and Citigroup all expect the dollar to further rise on the current basis.
【Cryptos】Bitcoin briefly surpassed $0.09 million, reaching a historic high. Ethereum dropped by over 3.2%, to $3261 per token.
【Crude Oil】New York Mercantile Exchange's December WTI crude oil futures prices rose by $0.08, an increase of 0.1%, closing at $68.12 per barrel.
Gold COMEX gold futures fell by 0.53%, to $2604.00 per ounce, trading in the range of $2633.40-$2595.70 during the day.
Metals London metals moved lower, with London copper down 1.69%, London aluminum down 0.35%, London zinc down over 1%, and London nickel down 0.58%.
Macro news
New York Fed: Inflation expectations slightly down, labor market expectations improve. The Federal Reserve Bank of New York's microeconomic datacenter released the October 2024 Consumer Expectations survey, with US one-year inflation expectations for October falling to 2.87%, hitting a four-year low. The median of the inflation uncertainty for three-year and five-year terms decreased. Expectations for the US one-year unemployment rate increase median fell to 34.5%, hitting a low seen since February 2022. Families reported a slight decline in short-term, medium-term, and long-term inflation expectations, with improved labor market expectations, reporting lower unemployment rates and risks. Surveyed families indicated an increased likelihood of finding a job if laid off. October saw an improved outlook on credit acquisition, with expectations for future credit acquisition also on the rise. Families reported a decreased likelihood of not being able to make minimum debt repayments on time in the next three months.
Bridgewater: Holding US stocks is a "good thing", expects strong economic growth during the Trump administration. Bridgewater Fund's Co-Chief Investment Officer Karen Karniol-Tambour said on Tuesday that holding US stocks is a "good thing" as she expects strong economic growth during President Trump's term. Karniol-Tambour noted that the prospects of US economic growth were lifting the stock market, despite the 10-year US bond yield hitting a four-month high after Trump's victory on November 5 in the presidential election. She said, "We may still have room for growth, even under tariff imposition, and there are still many unknown factors." Since Trump's election win, the S&P 500 index has risen by nearly 5%.
Apollo Co-President: Don't listen to the Fed's talk on inflation, keep your eyes wide open. Apollo Global Management Co-President Scott Kleinman cautioned the market not to be overly complacent about the current US inflation and interest rate trajectories. "Inflation is not being held back," Kleinman said in an interview on Tuesday, "The Federal Reserve can say what they want, but you need to keep your eyes wide open. Inflation pressures have built up due to global trends such as digital infrastructure development and decarbonization, we will have to endure a higher interest rate environment for a longer period."
Wall Street year-end bonuses rise for the first time in 3 years, debt sales are the big winners. On November 12, Eastern Time, compensation advisory firm Johnson Associates released a new report showing that bonuses on Wall Street are expected to generally increase this year, marking the first comprehensive growth since 2021. This expected growth covers investment bankers, traders, as well as professionals in asset management and wealth management fields, with year-end bonuses expected to achieve double-digit growth, especially for bankers involved in debt sales, with bonuses projected to increase significantly, up to 35%, due to increased trading activities and capital market rebounds.
US dollar rises to two-year high, Wall Street unanimously bullish. The US dollar index rose to its highest level since November 2022, pushing the euro to its lowest level in a year, with other currencies also under pressure. The yen and the Canadian dollar also fell, moving towards key psychological levels. Since Trump's re-election, with the Republican Party expected to sweep both houses of Congress, all of Wall Street's strategists have unanimously turned bullish on the dollar. According to recent strategy reports, JPMorgan, Goldman Sachs, and Citigroup all project further upward movement for the dollar from its current basis.
Federal Reserve's Powell: The Fed is capable of dealing with economic changes. Powell from the Fed stated that the economic conditions are good, allowing the Fed to lower borrowing costs. 'Strong but more discerning consumers, coupled with higher productivity and value-added labor, make the economic situation very positive,' Powell said in a speech prepared for the summit. 'Regardless of how the economy evolves, the Fed is capable of reacting appropriately,' he said, with interest rates off their peaks but still above historical lows. He is considering two economic scenarios: as election uncertainties wane, businesses may start reinvesting and hiring, allowing the Fed to focus on inflationary risks. Alternatively, businesses may resort to layoffs to address profit margin pressures from weakened pricing power, increasing the employment risks faced by the Fed.
[Individual stock news]
Boeing (BA.US) states it will take several weeks after the strike to fully resume production. On November 12th local time, Boeing announced that it will take several weeks to fully restore aircraft production as factory workers only returned to work after nearly two months of strike action. A Boeing spokesperson stated that delays in restarting operations at Washington and Oregon factories are due to the need for multiple steps in the production recovery process. Upon return, each employee will be briefed on their responsibilities and safety requirements, ensuring that training certificates are up to date. The strike stemmed from negotiations failing between labor and management regarding contract renewal. In mid-September, Boeing employees rejected the proposed wage package, leading to around 33,000 employees going on strike. Last week, employees voted to accept Boeing's contract offer and return to work by November 12th. The strike halted the production of Boeing 737 Max, 777, and 767 models.
Meta (META.US) to cut 40% off subscription fees for Facebook and Instagram in the EU region. Meta announced today significant changes for Facebook and Instagram in the EU region, including a 40% price reduction for ad-free subscriptions. Users in the EU region can choose between subscribing for an ad-free experience or continuing to use the services for free. Free users may see fewer personalized ads. While Meta strives to comply with EU regulations, it continues to receive additional requests beyond legal requirements from regulatory bodies. Meta will offer 'less personalized ads' as a compromise to the EU. Starting today, Meta will reduce monthly subscription prices from 9.99 euros to 5.99 euros on the web (about 76.9 to 46.1 RMB currently), and from 12.99 euros to 7.99 euros on iOS and Android (about 100 to 61.5 RMB currently). Additionally, each additional Facebook or Instagram account will incur a charge of 4 euros on the web (about 30.8 RMB currently) and 5 euros on iOS and Android (about 38.5 RMB currently).
Bank review:
Morgan Stanley: Raises Dell's (DELL.US) target price from $136 to $154 and maintains an 'overweight' rating, citing an increase in the company's sales of AI servers.
