US stocks fell on Wednesday, snapping a seven-day winning streak, while bond prices rose as Treasury yields slipped. The S&P 500 dropped 0.38%, while the Dow Jones Industrial Average slid 0.31%.
Inflation in October ticked up 2.3% on a 12-month basis, according to the U.S. Commerce Department. Core inflation rose 0.3% on the month, higher than September’s 2.7%. The news did not seem to faze investors much, as they boosted their bets that the US Federal Reserve will lower rates by 25 basis points at its December meeting.
Bitcoin rebounded, rising 5.4% to $96,169.36, bouncing back from a weekly low of around $90,700. The movement of bitcoin moved in opposite directions from US indexes, which fell on Wednesday.
Investors took profit on Big Tech stocks, causing the Nasdaq Composite to drop 0.6%. However, most analysts believe the market is still solid, with more than three-quarters of S&P stocks above their 200-day moving average.
US President-elect Donald Trump’s potential announcement of tariffs on Europe’s auto industry may be a concern for the euro zone. The US stock market has been performing well so far in 2024, with financial stocks being the best-performing group.
As investors prepare to enjoy Thanksgiving, they kept their trading appetite light, selling fewer shares than usual. Despite the market volatility, investors are optimistic about the year’s rally in Big Tech stocks and the potential for rate cuts by the US Federal Reserve.
Source: https://www.cnbc.com/2024/11/28/cnbc-daily-open-us-inflation-edged-up-but-investors-arent-fazed.html