It’s Wednesday, 8 January 2025, and we’re at the midpoint of a busy week. With key economic data, political developments, and global market trends in focus, today’s session is packed with factors that could drive market movements.
Today’s session is pivotal in shaping the market’s direction for the remainder of the week. Stay tuned and stay informed.
KEY INDICATORS
US labour market spotlight
Today’s focus is on the ADP Employment Report for December, a critical indicator ahead of Friday’s Non-Farm Payrolls release.
This report will provide insights into private-sector job growth and its implications for Federal Reserve policy in the coming months.
Global market sentiment
Asia: Asian markets ended mostly higher, buoyed by optimism around China’s trade data, which showed signs of recovery despite lingering global headwinds.
Europe: European stocks opened mixed as investors assessed new inflation data and corporate updates ahead of tomorrow’s European Central Bank (ECB) meeting minutes.
Oil prices and energy markets
Crude oil prices are holding steady after recent gains, supported by supply constraints and signals of demand recovery.
Energy stocks remain in focus as the latest US crude inventory report is due today.
MARKET MOVERS
Nasdaq100
Possible short preference Short positions below 21058.78 with targets at 20973.11 & 20905.80 in extension. Alternative scenario Above 21209.73 look for further upside with 21268.89 & 21317.84 as targets. The RSI is below its neutrality area at 50%, falling the most as it shed 1.89%, or 375 points.
Inflation fears drag down US markets
US stocks fell, and Treasury yields rose on Tuesday as the ISM Services Index showed a significant jump in prices for December.
Asia-Pacific markets traded mixed on Wednesday. South Korea’s Kospi rose by 1.3%, boosted by shares of Samsung Electronics, which climbed around 3.6%, even as the company forecast that its fourth-quarter profits would fall short of LSEG expectations.
The price index for December’s ISM report jumped to 64.4% from 58.2% in November, representing an increase of more than 10%.
It’s the first time since January 2024 that the reading has come in above 60%.
Stock market today: Dow, S&P 500, Nasdaq futures retreat amid report Trump could tap emergency powers for tariffs. Nasdaq Historical Data showing open/close and volume for the past month. Please note that previous price movement does not constitute or forecast future price movement and is solely there for information.
DJ30
Possible short preference Short positions below 42465.55 with targets at 42417.84 & 42290.61 in extension. Alternative scenario Above 42700.13 look for further upside with 42888.98 & 42966.51 as targets. The RSI lacks momentum.
TODAY’S NEWS HEADLINES
Dow falls more than 170 points; Nasdaq loses nearly 2% as Nvidia leads tech sell-off
Stocks fell on Tuesday as strong economic data raised questions about the possibility of Federal Reserve rate cuts later this year, leading to a spike in Treasury yields.
Declines across major tech stocks also dragged the market lower.
The S&P 500 dipped 1.11% to close at 5,909.03.
The Dow Jones Industrial Average lost 178.20 points, or 0.42%, to end at 42,528.36.
The Nasdaq Composite slid 1.89% to 19,489.68.
Oil prices edge higher, OPEC supply and tighter sanctions support gains
Oil prices edged higher on Wednesday, extending a rebound from the prior session as US industry data pointed to a drop in oil inventories, while production by OPEC countries was seen falling.
At 1:35 PM GMT, Brent oil futures expiring in March rose 0.2% to USD 77.23 a barrel.
West Texas Intermediate crude futures rose 0.4% to USD 74.53 a barrel.
Traders are also assessing the possibility that global supplies could be hit if the new US administration adopts a stricter stance on countries such as Iran with regard to sanctions.
Gold pares gains as dollar rebounds following US labour data
Gold prices pared earlier gains on Tuesday, pressured by a strengthening dollar and rising Treasury yields after increasing US job openings signalled diminishing odds of significant rate cuts by the Federal Reserve.
Spot gold was up 0.5% at USD 2,647.59 per ounce, after rising as much as 1% earlier in the session.
US gold futures rose 0.6% to USD 2,662.60.
Uncertainty surrounding tariff policy in the run-up to Trump’s inauguration on 20 January has fuelled concerns about future US policy moves.
