US Tech Stocks Surge Again – Nasdaq Up 1.24%
US tech stocks rallied once again in trading yesterday as investors looked ahead to an anticipated rate cut from the Federal Reserve on Wednesday. The Nasdaq led the way, closing the session up 1.24%, leaving the other two major indices in its wake: the S&P added 0.38%, while the Dow dropped 0.25%.
Other markets were much more subdued, with the dollar declining marginally and Treasury yields edging slightly higher. The two-year yield rose by 0.4 basis points to 4.249%, and the ten-year increased by 0.2 basis points to 4.399%. Oil prices fell after weak economic data from China heightened demand concerns, with Brent crude down 0.94% to $73.79 and WTI declining 1% to $70.57 per barrel. Gold traded within relatively tight ranges, closing the day up 0.13% at $2,652.05.
Bitcoin Powers Higher Again – Smashes $105k
Bitcoin surged higher once more in trading yesterday, fuelled by Donald Trump’s reiterated plans to establish a Bitcoin Strategic Reserve for the US. The world’s largest cryptocurrency reached a new high of $107,148, gaining more than 5% since late Friday and marking a 150% increase in 2024.
Bulls seized on the news to push prices higher, although sceptics caution against potential reversals from the administration, which has also emphasised its commitment to maintaining the US dollar as the world’s reserve currency. Many market participants expect heightened volatility in the months ahead, with traders poised to react to further announcements from the incoming US government as the new year progresses.
More Data Today Ahead of Central Bank Focus
Several key data events are scheduled on the macroeconomic calendar today, keeping traders on edge ahead of this week’s crucial rate decisions. While little is expected during the Asian session, the European session begins with the first of several significant UK data releases this week, including the latest employment figures.
Attention will then shift across the channel with both the German IFO and ZEW survey results due later in the day. The New York session will also have a strong data focus, with key Canadian CPI numbers (m/m expected +0.1%) and US Retail Sales figures (m/m expected +0.6%) set for release early in the session. Investor attention will then turn back to tomorrow’s Federal Reserve announcement.
