U.S. stock markets witnessed mixed performance, with the Nasdaq and S&P 500 indices reaching new highs. Following a decisive presidential election outcome, the focus shifted to the upcoming Federal Reserve interest rate decision. The Dow Jones fell slightly by 0.02% to 43,721.80 points, while the Nasdaq rose by 1.43% to 19,254.60 points, and the S&P 500 increased by 0.68% to 5,969.52 points.
Previously, markets experienced significant movements due to the election results, with the Dow soaring over 1,500 points. Bitcoin, the dollar, and banking stocks surged, while sectors potentially negatively impacted by the election, such as international funds and solar stocks, saw declines.
Market attention turned to the Federal Reserve's rate decision, with expectations of a 25-basis-point rate cut. However, long-term expectations for further easing in December decreased slightly, especially given potential inflationary impacts from trade and immigration policies. Previously, the Fed had cut rates significantly by 50 basis points.
In the U.K., the Bank of England lowered rates by 25 basis points to 4.75%, indicating confidence in slowing inflation while managing rate adjustments cautiously.
Quarterly earnings reports continued, with companies like Moderna, Warner Bros. Discovery, Block, Pinterest, and Rivian announcing their results. Economic data indicated a slight increase in initial jobless claims, aligning with analysts' expectations and reflecting broader impacts, including hurricane disruptions and strikes.
NVIDIA (NVDA, Financial) captured attention as its market value surpassed $357 billion. Goldman Sachs reiterated a "buy" rating, citing potential significant positive earnings adjustments in the forthcoming quarters due to expected operational improvements.
Apple faced potential fines from the European Commission for digital market regulation violations, while Amazon's AWS announced a significant investment in Italy to expand its data center business. Qualcomm reported better-than-expected fourth-quarter results and announced a $15 billion stock buyback, while Gilead Sciences exceeded revenue expectations and raised its full-year guidance.
