Wall Street opened higher on Thursday with hopes of strong 4Q reports

wall street market

Wall Street opened higher on Thursday with hopes of strong 4Q reports.

On Thursday, Wall Street gained higher as fears of a market downturn cooled a bit. As inflationary pressure remains above the 2% objective, Federal Reserve officials agreed on the necessity of proceeding carefully. That also includes the fact that there is no interest in cutting rates anytime soon.

On top of that, the strong third-quarter earnings reports, which initially jumped by 4.9%, have boosted traders’ sentiments. Economics and Fed officials have high hopes that the fourth quarter will see strong growth in earnings, profits, and consumer spending as well. That, in turn, will help tame inflation a bit more.

As of 12:30 a.m. ET, the S&P 500 benchmark was up by 0.48% to 4.550 basis points, and the tech-heavy Nasdaq was up by 0.46% to 14.224 basis points. While the Dow Jones gained 0.51% to a total of 35.355,11 bps,

Moving to the bond market, the 10-year Treasury yields rose by 0.88% to 4.445%, whereas the 30-year fixed mortgage rates declined by 0.1%, down to 4.544%. The 5-year bonds, on the other hand, gained 0.06%.

Meanwhile, oil prices declined after OPEC+ postponed its weekend meeting, impacting market dynamics. Based on the laser readings, the West Texas Intermediate was down by 0.97% to $76.33 per barrel. Brent crude oil was down by 0.72% to a market price of $81.65 per barrel. Since hitting the bear market, oil prices have swung forward and backward, which adds more concerns about market uncertainty. Particularly when there are talks about more oil production cuts next year. Saudi Arabia and Russia are determined to keep oil prices above the $90 objective while the U.S. tries to lower prices, which will most likely create more conflicts.

Elsewhere, traders have turned their attention to the European Central Bank’s decisions and their latest update in terms of inflation and the process they follow. German, French, and UK PMI data exceeded expectations, leading to increases in the euro, sterling, and bond yields. Sweden’s crown fell as its central bank maintained interest rates, while Dutch bank stocks dropped following the election victory of far-right populist Geert Wilders.

At the same time, the UN decision challenges OECD leadership, which is more likely to raise some issues in terms of the global tax system. The Wall Street Journal reported that some members of the UN have threatened the OECD organization and challenged their leadership methods. The U.N. is trying to access more financial resources in Africa. The UN-backed initiative represents a significant challenge to the established order of global tax coordination led by the OECD, with potential consequences for international cooperation and ongoing efforts to reform cross-border taxation.

Wardell-Johnson has commented on that to Reuters and says, “It is hoped that the UN will focus on areas where there are current needs for low-income economies. This includes illicit financial flows and bringing the formal economy into the formal economy.”.

Written by Editor

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