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Gold becomes safe haven as global tensions rise, Walmart and Nasdaq hit new records
05:45 2024-11-20 UTC--5

Tech in focus: Nasdaq and S&P 500 post strong gains

Stock markets were on the upswing on Tuesday, with the Nasdaq adding more than 1% and the S&P 500 also closing higher. The indices were helped by impressive gains in tech companies, while Walmart gained ground after raising its full-year outlook.

Dow Jones Down

Despite the positive sentiment in the tech sector, the Dow Jones index ended the day slightly lower, partly due to a redistribution of interest to more dynamic assets.

Nvidia: Betting on Artificial Intelligence

Nvidia shares (NVDA.O) soared 4.9% to $147.01, becoming the leader of growth on three key indexes. The company is preparing to publish quarterly results on Wednesday, which is attracting significant investor interest. Expectations are so high that strategists associate the event with a continuation of the stock rally, supported by the boom in artificial intelligence.

Tech Sector Leads

The S&P 500 tech sector (.SPLRCT) strengthened by 1.2%, taking the lead among other segments. Amid the overall growth, Amazon.com (AMZN.O) stood out, also demonstrating positive dynamics.

Capital on the side of giants

"Investors are now inclined to focus on the largest players in the market, especially given the geopolitical tensions associated with the situation in Ukraine. This may seem surprising ahead of the release of Nvidia's results, but megacaps provide a lot of liquidity," said Timothy Chubb, chief investment officer at Girard, Univest Wealth Division.

The rise of tech stocks and expectations for Nvidia continue to set the tone for the market, attracting the attention of both large and private investors.

Financial roller coaster: indices are divided in dynamics

Tuesday in the financial market was a day of contrasts: the Nasdaq Composite strengthened by 1.04%, closing at 18,987.47, and the S&P 500 added 0.40%, finishing trading at 5,916.98. However, the Dow Jones Industrial Average showed a decline of 0.28%, falling to 43,268.94.

Walmart on Top: Record, New Forecast

Walmart (WMT.N) shares rose 3% to $86.60, an all-time high for the company, as the retailer raised its full-year sales and profit forecasts for the third time in a row.

"Walmart made a strong statement with these forecasts," said Quincy Crosby, chief global strategist at LPL Financial. He said the biggest concern is the growth in high-margin products, which is a positive sign for the market.

Super Micro Computer: A Breakout

Super Micro Computer (SMCI.O) shares soared 31.2%, becoming one of the brightest stars of the day. The AI server maker announced BDO USA as its auditor and presented Nasdaq with a plan to avoid delisting, sparking a major surge in investor optimism.

Netflix: Behind the Scenes of a Boxing Show

Netflix (NFLX.O) continued to set records, adding 2.9% to close the day at $871.32. It was the second day in a row that the streaming giant's stock had reached an all-time high. The gains were fueled by news that the Jake Paul-Mike Tyson boxing match had been viewed 108 million times, a development that once again underscored the power of the platform's original content.

Optimism Amid Gains

While the tech sector continues to show strong gains, gains from companies like Walmart and Netflix highlight investor interest in a wide range of opportunities. Even as the Dow Jones corrects, the market remains bullish as it looks ahead to the week's key events.

Goldman Sachs Forecasts: New Target for S&P 500

Market optimism is fueled by an ambitious forecast from Goldman Sachs analysts: according to them, the S&P 500 index could reach 6,500 by the end of 2025. These expectations have become an additional incentive for investors who are interested in assessing the prospects for the development of the US economy.

Trump prepares key appointments

Against the backdrop of market forecasts, Donald Trump's statements related to the formation of a new administration are attracting attention. On Tuesday, the president-elect announced his decision to appoint renowned physician Mehmet Oz as head of the Centers for Medicare and Medicaid Services, and to propose Cantor Fitzgerald CEO Howard Lutnick as Secretary of Commerce.

New names on the Treasury Secretary list include Apollo Global Management CEO Mark Rowan and former Federal Reserve official Kevin Warsh. The appointments highlight Trump's desire to surround himself with people with corporate and financial sector experience.

Markets on the Rise: Stock Gains

Stocks ended the day with gainers outnumbering decliners on the New York Stock Exchange (NYSE) by 1.14 to 1. Moreover, there were 172 new highs and 97 new lows, indicating positive sentiment among investors.

The Nasdaq saw an even more impressive spread, with 2,459 stocks advancing and 1,841 falling, for a gainer ratio of 1.34 to 1.

Trading Volume: Activity Down

Despite the positive trends, overall trading volume on U.S. exchanges was slightly below average. There were 13.94 billion trades registered on the day, slightly below the average of 14.24 billion over the past 20 trading days.

A New Stage for Investors

Markets continue to show resilience, with Trump administration appointments and Goldman Sachs forecasts adding clarity to the future. Investors remain cautiously optimistic, watching the news and assessing the long-term outlook.

Global Markets: Stocks Rise Amid Uncertainty

Global stock markets rose on Tuesday despite the volatility. Investors watched with interest the new appointments in the administration of President-elect Donald Trump, which increased expectations for economic change. Additional support came from a slight improvement in the oil market, caused by the escalation of global tensions.

Oil and Inflation Expectations: The Market's Dual Driver

The rise in oil prices, albeit modest, has once again focused attention on the potential for inflation as investors try to gauge the impact of the tariffs and tax cuts promised by the new administration on economic momentum. These measures could trigger a rise in inflation, which, according to analysts, will limit the Federal Reserve's ability to further cut interest rates.

"We have already met our targets for the S&P 500 and Dow, and the current market is showing excellent mechanisms for pricing in future changes," said Bill Strazzullo, chief market strategist at Bell Curve Trading. However, he emphasized that the bond market will be a major test of Trump's economic agenda, since everything he does, from tariffs to tax reforms, carries inflation risks.

Debt Markets: Modest Decline in Yields

The yield on the 10-year U.S. Treasury note fell 2 basis points to 4.394%. This shows that investors continue to seek a balance between higher risks and safe assets.

European indices under pressure

The picture in Europe looked less optimistic. The main STOXX 600 index fell to 495.55, the lowest level since August. Trading ended 0.45% lower, due to increased geopolitical tensions, including new warnings from Russia.

Global stocks continue to grow

At the same time, the MSCI global stock index, which covers markets of different countries, rose by 0.42%, reaching 849.15. This growth became a symbol of the fact that, against the background of general uncertainty, investors still find opportunities to invest in risky assets.

What's next? Balancing risks and opportunities

Markets continue to show mixed dynamics: on the one hand, rising inflation expectations and geopolitical risks, on the other, a positive mood regarding upcoming economic changes. Investors are carefully weighing their strategies to be prepared for any scenario.

Oil: Recovering from Morning Slip

Oil prices ended trading with a slight increase, overcoming morning fluctuations. Brent futures strengthened by a symbolic cent, closing at $73.31 per barrel. American West Texas Intermediate (WTI) crude showed more confident dynamics, adding 0.3% and ending the day at $69.39 per barrel. These figures reflect the market's resilience amid global instability.

Currencies: Franc rises, dollar weakens

The Swiss franc strengthened by 0.03% against the euro, demonstrating demand for stable assets amid geopolitical tensions. At the same time, the US dollar index, reflecting its value against six major currencies, fell by 0.04%, stopping at 106.18. This demonstrates investors' desire to seek a balance between risky and defensive assets.

Gold: A Leader Among Safe Havens

Gold continues to attract attention as a key safe haven. The price of the precious metal rose by 0.76%, reaching $2,631.96 per ounce, which was a weekly high. U.S. gold futures also strengthened, finishing trading up 0.6% at $2,631 per ounce. Confidence in precious metals has increased amid changes in global geopolitics.

Russia's Nuclear Doctrine as a New Volatility Driver

According to Michael Weidner, co-head of global fixed income at Lazard Asset Management, Russia's morning announcements about revising its nuclear doctrine have become an important catalyst for the current market volatility.

Balancing on the Waves of Uncertainty

Markets continue to adapt to a challenging geopolitical environment, finding growth points in commodities and safe havens. These trends highlight that investors are closely monitoring global events to adjust their strategies in time.

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خطرہ کی انتباہ 58#&؛
غیر ملکی تبادلہ قدرتی لحاظ سے انتہائی قیاس آرائی اور پیچیدہ ہے ، اور یہ تمام سرمایہ کاروں کے لئے موزوں نہیں ہوسکتا ہے۔ فاریکس ٹریڈنگ کے نتیجے میں خاطر خواہ فائدہ یا نقصان ہوسکتا ہے۔ لہذا ، آپ کو ضائع کرنے کی رقم برداشت کرنے کی صلاح نہیں دی جاتی ہے۔ فاریکس مارٹ کی پیش کردہ خدمات کو استعمال کرنے سے پہلے ، براہ کرم فاریکس ٹریڈنگ سے وابستہ خطرات کو تسلیم کریں۔ اگر ضروری ہو تو آزاد مالی مشورے حاصل کریں۔ براہ کرم نوٹ کریں کہ نہ تو ماضی کی کارکردگی اور نہ ہی پیش گوئیاں مستقبل کے نتائج کے قابل اعتماد اشارے ہیں۔
غیر ملکی تبادلہ قدرتی لحاظ سے انتہائی قیاس آرائی اور پیچیدہ ہے ، اور یہ تمام سرمایہ کاروں کے لئے موزوں نہیں ہوسکتا ہے۔ فاریکس ٹریڈنگ کے نتیجے میں خاطر خواہ فائدہ یا نقصان ہوسکتا ہے۔ لہذا ، آپ کو ضائع کرنے کی رقم برداشت کرنے کی صلاح نہیں دی جاتی ہے۔ فاریکس مارٹ کی پیش کردہ خدمات کو استعمال کرنے سے پہلے ، براہ کرم فاریکس ٹریڈنگ سے وابستہ خطرات کو تسلیم کریں۔ اگر ضروری ہو تو آزاد مالی مشورے حاصل کریں۔ براہ کرم نوٹ کریں کہ نہ تو ماضی کی کارکردگی اور نہ ہی پیش گوئیاں مستقبل کے نتائج کے قابل اعتماد اشارے ہیں۔