Global stocks are facing the potential end of a four-session winning streak, as investors eagerly await the release of the U.S. labor market data for insights into the Federal Reserve’s future rate policy. Expectations for a rate cut in March have surged to about 60%, as the possibility of an interest rate cut from the Fed has sparked a rally in U.S. stocks.
The market is closely watching an upcoming important Federal Reserve meeting, as the anticipation of an early rate cut next year continues to mount. These developments have had a negative impact on the Dow Jones Industrial Average, which closed down, and the S&P 500 and NASDAQ, which also experienced declines.
Meanwhile, U.S. Treasury yields have seen an increase after new orders for U.S.-made goods fell, leading to concerns about the strength of the economy. This has contributed to a decline in European stocks, as initial gains were quickly reversed, and MSCI’s global stock gauge has also faced a downturn.
Adding to investor worries is the escalating Israel-Hamas conflict, with attacks on commercial vessels raising concerns about stability in the region. Consequently, crude prices have declined due to investor skepticism over the decision by OPEC+ and worries about global fuel demand.
In terms of currency markets, the dollar has rebounded after three weeks of declines, resulting in a retreat for gold from its record high. The dollar index has gained ground, while the euro has weakened against the dollar.
Furthermore, gold has pulled back after reaching its record high, experiencing a 2.05% decline. This could be a result of profit-taking from investors who have profited from the recent surge in gold prices.
As traders and investors take all these factors into consideration, the global market remains on high alert for new developments and potential market-moving events in the near future.
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