S&P500 climbs as investors await key inflation data

The S&P 500 climbed on Monday as investors tried to continue Wall Street’s year-end momentum.

The broad market index gained 0.39 per cent to close at 4,622.44, while the Nasdaq Composite added 0.20 per cent to 14,432.49. The Dow Jones Industrial Average advanced 157.06 points, or 0.43 per cent, to finish the session at 36,404.93.

The S&P 500 and Nasdaq are coming off their sixth straight weekly gain. This week, investors are looking ahead to key inflation data, which could affect market movements and rate policy from the Federal Reserve. The central bank begins its two-day meeting Tuesday.

November’s consumer price index reading is due Tuesday, while the producer price index is set for release on Wednesday. The forthcoming slate of economic data are some of the final obstacles left for markets to remain strong into the end of 2023.

Macy’s shares rallied more than 19 per cent on news the retailer received a buyout offer for $5.8 billion. Tech stocks Apple and Nvidia pulled back 1.3 per cent and 1.9 per cent, respectively, limiting the Nasdaq’s gains. Shares of Meta Platforms ticked down 2.2 per cent.

Turning to US sectors, all closed higher overnight except for Communication Services. Consumer staples was the best performer.

Bitcoin has experienced an 8.9 per cent price decline today, plummeting to $40,550, erasing most of its gains from the previous week. The drop is attributed to factors like the absence of a specific catalyst, the liquidation of long options bets, and the broader market dynamics, including a rally in the US dollar and rising Treasury yields, which suggest a potential delay in the Federal Reserve's planned interest rate cuts.

In commodity-related news, the UN's COP28 climate summit draft agreement has faced backlash for omitting a reference to the phaseout of fossil fuels. The document suggests actions to achieve net-zero emissions by 2050 but lacks a clear commitment to reducing fossil fuel consumption and production.

The CEO of Yellow Cake, a London-listed uranium investment company, has cautioned that China is aggressively pursuing global uranium supply amid soaring prices and has surpassed the West in securing uranium through open-market purchases, long-term contracts, and mine acquisitions. As uranium prices hit a 15-year high, this competition for limited resources could pose challenges for Western utilities in sourcing their supply.

Iron ore prices have unexpectedly surged by almost 40 per cent since May, reaching $133.95 per tonne, driven by increased Chinese steel production. Despite a drop in steel prices as China flooded the market with steel, iron ore prices continued to rise due to China's substantial demand.

Futures

The SPI futures are pointing to a 0.2 per cent rise.

Currency

One Australian dollar at 8:45 AM was buying 65.67 US cents.

Commodities

Gold has lost 0.85 per cent. Silver has fallen 0.61 per cent. Copper has lost 1.21 per cent. Oil has added 0.24 per cent.

Figures around the globe

European markets closed mixed. London’s FTSE fell 0.13 per cent, Frankfurt gained 0.21 per cent, and Paris closed 0.33 per cent higher.

Turning to Asian markets, Tokyo’s Nikkei added 1.50 per cent, Hong Kong’s Hang Seng lost 0.81 per cent while China’s Shanghai Composite closed 0.74 per cent higher.

The Australian share market closed 0.06 per cent higher at 7,199.04.

Dividends payable
Amcor PLC (ASX:AMC)
Washington H Soul Pattinson & Co Ltd (ASX:SOL)
SSR Mining Inc (ASX:SSR)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.

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