- U.S. stocks are up at the end of the week, after the Fed's preferred measure of PCE inflation pointed to lower-than-feared CPI pressure in the U.S.
- The Nasdaq index is up nearly 1.5% at the time of this writing. Similar returns are also seen on the S&P500. Nearly 1.2% gains are also seen on the Russell 2000 index, which brings together smaller-cap companies.
- European indices end the week in a pessimistic environment. All major markets on the Old Continent ended the session with losses. Germany's DAX fell 0.4%, France's CAC40 lost 0.3%, Britain's FTSE 100 was down 0.3% and Switzerland's SMI lost 0.3%. The STOXX Europe 600 sapped nearly 0.9% today.
- Novo Nordisk shares suffered a strong discount today. The Danish drugmaker unveiled disappointing test results for a new experimental obesity drug, which turned out to be lower than the company's earlier predictions. As a result, the stock has plunged more than 20%, and the current price is at its lowest levels since July 2023.
- Nike shares made up for today's losses, which were caused by the company's 2Q24/25 results, with CEO Elliott Hill warning that the company's remediation efforts could hurt results in the short term.
- PCE data came in slightly below expectations. However, that was enough for us to see a broad rebound in the stock and cryptocurrency markets. After the heavily hawkish Fed on Wednesday, the lower PCE data is a relief of sorts and hope for investors that inflationary pressures may not be that significant. Core PCE inflation came in at 2.8% y/y vs. expected: 2.9% y/y and the previous reading of 2.8% y/y).
- The lower PCE data brought the dollar's bullish momentum initiated after the Fed's decision to a halt today. The EURUSD pair returned above 1.0440, and the dollar itself is now the worst performing G10 currency.
- The declines in the US dollar favor precious metals today. Gold is currently gaining 1.2%, while silver is adding more than 2% intraday.
- Natural gas contracts are gaining nearly 5%, after the latest weather forecasts pointed to a cool middle of January next year.
- The crypto market is seeing a rebound after this morning's declines, which pushed Bitcoin below the $93,000 barrier. Today, however, the popular cryptocurrency has returned above $96,000, thanks in large part to optimistic sentiment on Wall Street.
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