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Indices are deepening the losses from the start of the session. At the time of publication, the US500 is down 0.35% to 5866 points, the US100 is down 0.70% to 20600 points, and the small-cap index, the US2000, has reduced its gains from 1.10% to 0.40% currently.
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The strongest currency remains the EUR, gaining 0.3-0.4% against other currencies. The EURUSD rate is up 0.4%, fully reversing the initial declines following the release of stronger U.S. data.
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The USDIDX dollar index has also returned to declines, trading 0.25% lower at 103.8600 points, falling back below the 104-point barrier.
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In the stock market, gains are concentrated in stocks like Alphabet (GOOGL.US +3.6%), Amazon (AMZN.US +1.4%), and Tesla (TSLA.US +1.3%). Meanwhile, investors are selling shares of companies in the semiconductor sector. Nvidia (NVDA.US), Broadcom (AVG.US), and TSMC (TSM.US) are down about 1.4-1.6%.
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Labor market data came in significantly above expectations. The ADP report, indicating private sector employment changes in the U.S. for October, showed an increase of 233,000 compared to the forecast of 110,000 and the revised September figure of 159,000 (up from 143,500). The dollar strengthened after the data, suggesting that yesterday's "dovish" reaction to the JOLTS report may have been premature.
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We then received preliminary Q3 2024 GDP data from the U.S. Quarterly U.S. GDP growth in Q3 was 2.8%, compared to the forecast of 2.9% and the previous 3%. While slightly below expectations, the data still confirms solid U.S. economic growth.
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Core PCE prices rose by 2.2% quarter-over-quarter compared to the forecast of 2.1% and the previous 2.8%, indicating declining price pressures compared to previous quarters.
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German inflation data exceeded expectations, which supported the EURUSD exchange rate. The CPI for Germany in October was 2% year-over-year, compared to the expected 1.8% and the previous 1.6%.
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The Pending Home Sales Index rebounded by as much as 7.4% month-over-month, compared to the expectation of 0.8% and the previous reading of 0.6%.
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SMCI shares are down as much as 30% after EY resigned as auditor. Management and control concerns emerged in July 2024, leading to a review by a Special Committee with external firms. Despite opposition from the company and the ongoing review, EY made a final decision to resign on October 24, 2024.
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Reddit shares are up as much as 45% after a strong Q3 report, driven by a 68% year-over-year revenue increase to USD 348.4 million, surpassing analysts' expectations of USD 312.8 million. The company also significantly improved profitability and active user numbers.
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European stock markets, especially the Euro Stoxx 50 and German DAX, are facing serious challenges mid-week. Issues are exacerbated by problems faced by major European companies, such as Volkswagen, which is dealing with profit declines and potential factory closures. Most indices are down about 1.20-2.00%.
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Gold is up 0.50%, reaching a new ATH of USD 2788 per ounce. Silver is down 1.50% to USD 33.90 per ounce.
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In the cryptocurrency market, we are seeing slight declines, but given yesterday's strong gains, today's sell-off is minimal. Bitcoin is down 1.00%, holding around USD 72,000. Ethereum is up 1.40% to USD 2670, with intraday gains reaching over 3.00% above USD 2700.
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