Election rally loses steam, Fed sticks to the script

Reuters

Election rally loses steam, Fed sticks to the script

2024 11월 7, 오후 9:12 GMT

<html xmlns="http://www.w3.org/1999/xhtml"><head><title>LIVE MARKETS-Election rally loses steam, Fed sticks to the script</title></head><body>

S&P 500, Nasdaq reach record closing highs; Dow unchanged

Comm svcs leads S&P 500 sector gainers; Financials weakest group

Dollar down; crude, bitcoin gain; gold surges ~1.7%

U.S. 10-Year Treasury yield slides to ~4.33%

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ELECTION RALLY LOSES STEAM, FED STICKS TO THE SCRIPT

The S&P 500 and the Nasdaq gained ground on Thursday as markets continued to digest the ramifications of a second Trump presidency and the Federal Reserve cut rates as expected.

The major indexes followed Wednesday's blowout rally with a slightly more sedate trading day, which nonetheless sent The S&P 500 .SPX and the Nasdaq .IXIC to record closing highs.

The blue-chip Dow .DJI was little changed on the day, its gains held back by a reversal in financial stocks .SPSY.

Communication services .SPLRCL, tech .SPLRCT, chips .SOX and tech-adjacent growth stocks .NYFANG outperformed the broader market.

Every member of the "magnificent seven" group of AI-related megacaps gained at least 1%, with Meta Platforms META.O leading the pack at 3.4%.

The session's biggest percentage losers included financials in general, and regional banks .KRX in particular.

Trump Media & Technology Group DJT.O reversed Wednesday's surge, tumbling 23.0%.

The Fed delivered the 25 basis point interest rate cut markets were expecting, in a unanimous decision. The accompanying statement said that while "economic activity has continued to expand," it also said "labor market conditions have generally eased" and risks to full employment and inflation are "roughly in balance."

At his subsequent presser, Fed Chair Jerome Powell reiterated that sentiment, adding that the central banks is "trying to maintain a middle path" between moving to slowly and too swiftly toward a neutral policy stance.

Powell also added that the election outcome will have no near-term effect on Fed policy, and he will not step down if Trump orders him to do so.

Financial markets are currently setting a 70.5% likelihood of a December encore, with another 25 bp cut, according to CME's FedWatch tool.

That would bring the year's grand total to 100 bps in reductions to the Fed funds target rate since Powell & Co embarked on its easing phase in September.

Late in the session, the Fed released its latest report on consumer credit outstanding, which increased by $6.0 billion in September, falling well short of the $14.50 billion consensus.

On Friday, investors will be treated to the University of Michigan's initial take on November Consumer Sentiment, which is seen posting a nominal monthly improvement.

Here's your closing snapshot:

(Stephen Culp)

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FOR THURSDAY'S EARLIER LIVE MARKETS POSTS:

S&P 500 BARELY BUDGES AFTER FED CUTS RATES BY 25 BPS - CLICK HERE

POST-ELECTION VIX PLUNGE SUGGESTS STRONG S&P 500 RALLY - CLICK HERE

TWO LABOR MARKET METRICS FOR FED DAY - CLICK HERE

S&P 500 INDEX NEARS 6k AHEAD OF THE FED - CLICK HERE

U.S. ELECTION PULLS RETAIL TRADERS TO STOCK MARKETS - CLICK HERE

NASDAQ COMPOSITE: CHARGING TOWARD A BATTLE LINE - CLICK HERE

TRUMP CONSTRAINTS COULD DECIDE EUROPEAN EQUITIES' FATE - CLICK HERE

EUROPE RISES ON STRONGER MINING, AUTOS, BUT EARNINGS DRAG - CLICK HERE