On 21 November 2023, the US stocks retraced, with S&P 500 and Nasdaq ending their respective five-session winning streaks because retailers saw a fall post some unfavourable outlooks and there was a decline in technology shares. After the release of US Federal Reserve minutes, the indexes were lower as these minutes showed that officials have decided to take cautious approach to increasing US interest rates in 2023. The US central bank officials announced that they will increase interest rates only if progress in controlling inflation gets slow. In the past few sessions, the stocks have rallied because there were expectations that the Fed might be done with increasing rates.
Apart from the Federal Reserve minutes, there was no other data to support the increase in the US market which led to underwhelming price action and some profit-taking. Nvidia’s shares ended lower, down by ~2% after the closing bell following its quarterly report and outlook. During regular session, shares of Lowe’s Cos saw a fall of ~3.1% after the company expected a significant decline in annual comparable sales in comparison to earlier expectations and after the company reduced its profit forecast for full year.
Yesterday, The Dow Jones saw the fall of ~62.75 points, or 0.18%, to 35,088.29, S&P 500 lost ~9.19 points, or 0.20%, to 4,538.19 and the Nasdaq Composite saw a decline of ~84.55 points, or 0.59%, to 14,199.98. The volume on the US exchanges came at ~9.40 billion shares in comparison to ~10.93 billion average for full session over previous ~20 trading days.
Elsewhere, the benchmark index of India, Nifty 50, saw an increase of about half a percent, which was supported by gains in index heavyweights including Reliance Industries (RIL) and HDFC Bank. These increases were because of positive global cues, and continued optimism that the interest rates have now peaked.
Ending its 2-day losing streak, Nifty went up by ~89 points, or 0.45%, to close the session at ~19,783. As the result of this, the index marked its highest close since 17th October. S&P BSE Sensex grew by ~276 points, or 0.42%, closing the session at ~65,931, with metal stocks helping such gains.
Fall in 10-year US bond yields also supported the investors’ risk appetite and supported such gains. The 10-year US bond yield traded at ~4.4%.
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