- In Wednesday’s session, the market adopts a wait-and-see stance, although sentiment is tilting toward optimism. Valuations are supported mainly by results from the financial sector, further contracts in the technology sector, and—above all, as it may seem—a real chance of de-escalation and an end to the conflict in the Persian Gulf. The main U.S. stock indices are gaining, but advances are limited to below 1%. NASDAQ is performing best, while the Dow lags behind.
- After an approximately two-week rally, the S&P 500 is “a hair’s breadth” from its all-time high, reaching an intraday peak of 7,001 points.
- Nvidia is boosting quantum-related companies with its new model, and stocks in the sector are rising by more than 10% on average.
- Snap is laying off more than 15% of its workforce and is up 6%.
- Tesla is up more than 6% after the company’s CEO revealed a new “AI5” chip.
- Among U.S. macroeconomic data:
- The NY Empire State Index surprised to the upside: up to 11 versus expectations of -0.5 (previously -0.2).
- Fuel and crude inventories came in well below expectations; crude is showing weaker demand.
- Sentiment looks much worse in Europe. Most indices are posting slight declines. The weakest mood appears to be in France’s CAC40, which slipped by about 0.6%. Strength is shown by the WIG20, which is up about 0.8%.
- ASML beat market expectations and raised its year-end sales forecast; nevertheless, the stock fell 4%.
- Sharp declines were seen in “luxury” stocks: Hermès and Kering disappointed with their results and lost nearly 10%. LVMH performed better, finishing the session flat.
- In the FX market:
- The Australian dollar is strengthening, gaining as much as 0.5% against the U.S. dollar.
- The Swiss franc is weaker, down about 0.2% versus most major pairs.
- Commodities:
- Energy commodities remain in limbo, awaiting clearer statements from decision-makers in Iran and the U.S. WTI crude ends the day around $91, while Brent is at $95.
- In industrial and precious metals, price moves are limited to around 1%. Platinum, aluminum, and zinc are gaining. Palladium is declining.
- Moderately positive sentiment prevails in crypto: Ethereum and Solana are up just under 1%. Bitcoin posts slight losses, remaining just below $74,000.
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