BEIJING, CHINA – SEPTEMBER 04: Buildings and vehicles are seen in the central business district during the rush hour on September 4, 2020 in Beijing, China.
Zhang Qiao | Visual China Group | Getty Images
Asia-Pacific markets opened mostly higher Wednesday, breaking ranks with major Wall Street benchmarks that declined ahead of key inflation data that could influence the Federal Reserve’s interest rate decision.
South Korea reported seasonally adjusted unemployment rate at 2.7% in November, according to Statistics Korea, unchanged from the previous month.
China is reportedly kicking off its annual economic work conference on Wednesday to outline its economic policies and growth targets for next year.
Australia’s S&P/ASX 200 started the day 0.31% lower.
Japan’s Nikkei 225 as well as the broad-based Topix opened nearly flat.
In South Korea, the blue-chip Kospi rose 0.11% and small-cap Kosdaq jumped over 2%.
Hong Kong’s Hang Seng index futures were at 20,435, higher than the HSI’s last close of 20,311.28.
Overnight in the U.S., the Dow Jones Industrial Average fell for a fourth straight day, losing 154.10 points, or 0.35%, to 44,247.83.
The S&P 500 fell 0.3% to end at 6,034.91, and the Nasdaq Composite lost 0.25% to 19,687.24. Both indexes fell for a second straight day.
Investors await the U.S. consumer price index report for November, due on Wednesday, which could influence the Federal Reserve interest-rate path at its policy meeting from Dec. 17 to Dec. 18.
The closely-watched economic index is forecast to have risen slightly to 2.7% 12-month inflation rate, accelerating by 0.1 percentage point from the previous month, and above the Fed’s targeting annual inflation at 2%, according to the Dow Jones estimates.
— CNBC’s Sean Sonlon and Brian Evans contributed to this report.
See the stocks moving after hours
Here are some stocks moving in extended trading:
- General Motors — Shares of the automotive giant popped nearly 3% after General Motors said it would no longer fund robotaxi development by self-driving car company Cruise.
- GE Vernova — The energy equipment company slid 3% after providing full-year revenue guidance for both the 2024 and 2025 fiscal years that was weaker than expected by analysts polled by FactSet.
See the full list here.
— Alex Harring
8 stocks in the S&P 500 trade at new 52-week highs
During Tuesday’s trading session, eight stocks in the S&P 500 reached new 52-week highs.
Names that hit this milestone included:
- AutoZone trading at all-time-high levels back to its initial public offering in April 1991
- O’Reilly Auto trading at all-time-high levels back to its IPO in April 1993
- Tesla trading at levels not seen since November 2021
- Citigroup trading at levels not seen since October 2021
- MSCI Inc. trading at levels not seen since December 2021
- Catalent trading at levels not seen since April 2023
- Apple Inc. trading at all-time-high levels back to its IPO in December 1980
- ServiceNow trading at all-time-high levels back to its IPO in June 2012
On the flip side, just three stocks were trading at their 52-week lows: Baxter, Centene and Teleflex.
— Lisa Kailai Han, Christopher Hayes
A volatile bull market is in store for 2025, says Citi
While stocks may be due for more gains in 2025, Citi believes investors should also brace for more volatility given an uncertain policy outlook and raised valuations.
“We maintain a positive view on US equities headed into 2025,” the firm’s U.S. equity strategist Scott Chronert wrote. “Ongoing soft landing and Artificial Intelligence tailwinds now interact with Trump policy promise, and risks. Continued broadening beyond Mega Cap Growth impacts is critical but an extended valuation starting point will be an ongoing hurdle.”
The strategist has a year-end 2025 base case target for the S&P 500 of 6,500, allowing for gains in the mid-single digits next year. However, his bull case of 6,900 and bear case of 5,100 allow for a broad range of outcomes.
“Our bull and bear case assumptions help frame an expectation for increased volatility next year,” Chronert continued.
— Sean Conlon
A continued rally appears to be ‘path of least resistance’ for year-end 2024, says Barclays
The market may likely see more upside over the coming weeks, according to Barclays.
“Momentum seems so strong that a continued rally seems the path of least resistance for the rest of 2024,” analyst Ajay Rajadhyaksha wrote in a note this week.
Rajadhyaksha also said bond markets are expected to be “range-bound,” given that investors are awaiting more details on President-elect Donald Trump’s policies.
— Sean Conlon
Trump tariffs not expected to go into effect until late 2025, says Wolfe Research
President-elect Donald Trump’s tariff plans may not go into effect for some time, according to Wolfe Research’s Stephanie Roth.
“We don’t expect sweeping tariffs to go into effect until late 2025 — Republicans are reportedly discussing how to potentially leverage tariff revenue in a broader fiscal package, which increases the odds tariffs happen late in 2025 rather than early,” the firm’s chief economist wrote.
If a 10% universal baseline tariff and a 60% tariff on Chinese goods coming into the U.S. were to be implemented, Roth estimates the U.S. economy will be hit up to 1.2% in gross domestic product, and inflation will see a boost of 1.1%.
— Sean Conlon
U.S. Steel falls on report Biden will block Nippon sale this month
U.S. Steel shares plunged late Tuesday afternoon on a report that President Joe Biden plans to block the company’s acquisition by Japan’s Nippon Steel later this month.
U.S. Steel stock was briefly halted due to volatility. The company’s shares were down more than 9% after trading resumed.
People familiar with the matter told Bloomberg News that Biden will block the $14.1 billion sale once the Committee on Foreign Investment in the United States submits its review to him by Dec. 22 or Dec. 23.
— Spencer Kimball
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