Wall Street Starts December Near Highs as Key Jobs Data and Powell Speech Loom
Wall Street's main indexes kicked off December near their record highs as traders look ahead to a significant data week, focusing on key US labour market figures, including the November jobs report, job openings, wage growth, and manufacturing and services activity.
These figures will play a key role in shaping the Federal Reserve's next rate decision.
Forecasts project a November job gain of 202,000, recovering from October's softness, with unemployment rising to 4.2%.
With the Federal Reserve Chair, Jerome Powell's upcoming speech should draw attention as investors seek clarity on the Fed's monetary policy stance heading into the December 18 meeting.
While markets expect a rate cut this month, Powell’s remarks and labour data could heavily influence sentiment, shaping expectations for 2025 policy moves.
Bitcoin continues to hover near the US$96K level, while Ethereum exhibits a bullish bias, maintaining solid upward momentum despite lingering market uncertainties.
Meanwhile, the US Dollar received a boost over the weekend after President-elect Donald Trump warned BRICS nations against attempts to replace the greenback with another currency.
At the New York close, preliminary data showed the Dow Jones Industrial Average fell 128.65 points or 0.29% to 44,782.00.
The Standard & Poor's 500 rose 14.77 points, or 0.24%, to 6,047.15, surpassing its intraday record high of 6,025.42 set on November 26, while the tech-heavy Nasdaq Composite gained 185.78 points, or 0.97%, to 19,403.
The so-called "Magnificent Seven" mega-cap companies demonstrated strength on Monday, delivering notable gains.
Apple hit a new all-time high, rising 1%, while Nvidia added 0.3%, Meta Platforms (formerly Facebook) surged 2.9%, Alphabet climbed 1.4%, Amazon gained 1.3%, and Microsoft advanced 1.9%.
In bonds, crypto and commodities
The 10-year Treasury yield, which influences mortgage rates and other key loans in the US government bond market, settled at 4.19%.
The policy-sensitive two-year yield, which closely tracks Federal Reserve interest rate adjustment expectations, closed at 4.18%.
Bitcoin, the flagship cryptocurrency, remains on track to test the US$100,000 mark. It traded within an intraday range of US$94,510 to US$98,082, eventually settling at US$96,024. The cryptocurrency continues to show strong momentum as it approaches this key psychological level.
As the bullish bias persists, traders should monitor Bitcoin's ability to maintain support above US$85,000, which will serve as confirmation of sustained bullish momentum.
A successful rally could push Bitcoin toward or beyond the US$100,000 mark, further strengthening the upward trend.
While this could present an opportunity for further gains, caution is needed for potential pullbacks that may affect the trend.
If there is any pullback, the support may initially be found at around US$85,000 to US$87,500, with additional buying interest likely near US$77,700.
This support structure could offer opportunities for traders to enter during price corrections.
While there are notable opportunities, caution is advised, as increased market volatility from renewed demand is expected.
Effective risk management and adaptable strategies will be key to navigating this volatility and capitalising on potential opportunities.
Meanwhile, Ethereum's recent bullish comeback intraday range was US$3,561 to US$3,756 before closing at US$3,643.
Given last week’s rebound, the path ahead remains bumpy, with a near-term cap seen around US$3,750 to US$4,000. Traders should reassess at this point.
These levels will determine whether the upward trend can continue or if consolidation will occur.
Any pullbacks will likely find support near US$2,900, with additional support in the US$2,300. Reassessment is recommended if these levels are tested.
Gold slipped by US$2,635 an ounce, under pressure from the rebound in the US dollar, while silver closed at US$30.66.
In the energy sector, Brent crude, the international standard, closed at $71.74 and the US benchmark, West Texas Intermediate (WTI), settled at $67.78
Meanwhile, in currencies, the US Dollar Index (DXY), which tracks the greenback against a basket of currencies, closed lower at 106.50 in New York.
The Eurodollar was 1.0488, and the British pound finished at 1.2640. The Japanese yen ended at 149.95, and the Australian dollar was at 0.6460.
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