List of US stock market indices declining
List of U.S. stock market indices are down sharply in trading Thursday as investors assess the December Federal Reserve (Fed) meeting minutes and a fresh batch of statistics.
U.S. stock index prices – what affects the stock market?
Minutes from the Federal Reserve’s December meeting showed that none of the Fed’s leaders believe that cutting the benchmark interest rate in the early part of the year, as the financial markets expect, is prudent. Meeting participants generally believed that “maintaining restrictive monetary policy for an extended period until inflation clearly moves toward 2% would be justified,” the minutes said.
At that, the American Central Bank confirmed its desire to achieve a slowdown of inflation without excessive weakening of economic activity. This affects the current quotations for the US 100 Index.
In December the Fed raised the rate by 50 basis points (bps) – to 4.25-4.5% per annum, while at the previous four meetings the rate was raised by 75 bps. At the same time, Fed Chairman Jerome Powell said the U.S. central bank will raise the rate until it meets its inflation targets.
The number of Americans filing for unemployment benefits for the first time last week fell by 19,000 to 204,000, according to a report from the U.S. Labor Department. This is the lowest figure since late September. A week earlier, the figure was 223,000, not 225,000 as originally reported. Analysts had forecast an average of 225,000, according to Trading Economics.
The U.S. foreign trade deficit narrowed 21% to $61.5 billion in November, the country’s Commerce Department said. This is the lowest figure since September 2020. According to revised data, in October, the negative trade balance was $77.8 billion, and not $78.2 billion, as previously reported. Experts on average had expected a decline to $73 billion from the previously announced October level, according to Trading Economics.
A report from industry body ADP on Thursday showed an acceleration in the pace of U.S. private-sector job growth. They increased by 235,000 in December, the ADP said. Analysts on average had forecast an increase of 150,000 jobs, according to Trading Economics. The figure rose to 127,000 in November.
The Dow Jones Industrial Average index declined 380.47 points (1.14%) to 32889.30 points.
Standard & Poor’s 500 index declined 43.67 points (1.13%) to 3,809.30 points.
The Nasdaq Composite was down 145.18 points (1.39%) at 10313.59.
Earlier, we reported that the US stock indices were rising before the publication of the minutes of the Fed meeting.
Goldman Sachs to start trading Japan power futures
Goldman Sachs Group (NYSE:GS) plans to establish a desk in Tokyo to start trading Japanese power derivatives, two people familiar with the matter told Reuters on Wednesday.
More foreign energy companies and banks are seeking access to the Japanese power market, which was launched in 2016 in the wake of the Fukushima nuclear disaster in 2011, spurring trade activity by generators, consumers, and distributors.
An interest in trading rose amid growing liquidity in Japan’s power futures markets as the volatility of electricity prices surged following Russia’s invasion of Ukraine. The power crisis heightened the need for hedging among power suppliers and buyers, according to the sources.
Goldman Sachs has hired some traders in Tokyo, the sources said, requesting anonymity as the matter is still confidential.
A spokesperson for Goldman Sachs declined to comment.
Cathie Wood buys the dip in Coinbase shares amid SEC crackdown
“We allege that Coinbase, despite being subject to the securities laws, commingled and unlawfully offered exchange, broker-dealer, and clearinghouse functions,” SEC Chair Gary Gensler said in a press release.Coinbase shares settled 12% lower on Tuesday, their second session of steep losses this week following a 9% tumble on Monday, after the SEC also sued world no. 1 crypto exchange Binance over similar charges.But Coinbase shares rose 2% in aftermarket trading, boosted by news of the Ark buy.Cathie Wood has repeatedly expressed confidence in Coinbase and the broader crypto industry, and has cited a $1 million long-term price target for Bitcoin on the belief that it is an effective inflation hedge.Coinbase holds the fifth-largest weightage in Ark’s flagship Innovation ETF, with the fund having consistently accumulated the stock since its listing in 2021. But Coinbase has seen a sharp decline in value from 2021 highs, hitting record lows earlier this year as interest in crypto markets rapidly dried up amid rising U.S. lending rates.The company has also struggled to remain profitable amid multiple failed ventures, regulatory hiccups, and mounting operational costs, especially as low crypto trading volumes hurt its transaction margins, which are a key source of revenue.Bitcoin prices showed little reaction to the SEC move against Coinbase, rising 4% on Wednesday. But the world’s largest cryptocurrency was nursing steep losses through May, as trading volumes sank.
Japan stocks lower at close of trade; Nikkei 225 down 1.82%
Japan stocks were lower after the close on Wednesday, as losses in the Banking, Transportation Equipment and Power sectors led shares lower.
At the close in Tokyo, the Nikkei 225 declined 1.82%.
The best performers of the session on the Nikkei 225 were Kawasaki Heavy Industries, Ltd. (TYO:7012), which rose 4.35% or 146.00 points to trade at 3,500.00 at the close. Meanwhile, Tokuyama Corp. (TYO:4043) added 3.78% or 84.50 points to end at 2,321.00 and SKY Perfect JSAT Holdings Inc. (TYO:9412) was up 2.20% or 12.00 points to 557.00 in late trade.
The worst performers of the session were Shionogi & Co., Ltd. (TYO:4507), which fell 4.43% or 283.00 points to trade at 6,100.00 at the close. Daikin Industries, Ltd. (TYO:6367) declined 4.40% or 1,300.00 points to end at 28,240.00 and Tokyo Electron Ltd. (TYO:8035) was down 4.18% or 820.00 points to 18,815.00.
Falling stocks outnumbered advancing ones on the Tokyo Stock Exchange by 2255 to 1305 and 270 ended unchanged.
Shares in Kawasaki Heavy Industries, Ltd. (TYO:7012) rose to 5-year highs; rising 4.35% or 146.00 to 3,500.00. Shares in Tokuyama Corp. (TYO:4043) rose to 52-week highs; gaining 3.78% or 84.50 to 2,321.00.
The Nikkei Volatility, which measures the implied volatility of Nikkei 225 options, was down 3.03% to 21.15.
Crude oil for July delivery was down 0.84% or 0.60 to $71.14 a barrel. Elsewhere in commodities trading, Brent oil for delivery in August fell 0.79% or 0.60 to hit $75.69 a barrel, while the August Gold Futures contract fell 0.42% or 8.30 to trade at $1,973.20 a troy ounce.
USD/JPY was down 0.20% to 139.36, while EUR/JPY fell 0.33% to 148.83.
The US Dollar Index Futures was up 0.09% at 104.17.
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