Market Commentary - Foreign Markets
Stocks Fall as Fed Rate Cuts and Nvidia Probe Weigh on Market As on : 10-Dec-24  10:42

The Dow fell 240.59 points (0.5%) to 44,401.93, the Nasdaq slid 123.08 points (0.6%) to 19,736.69 and the S&P 500 declined 37.42 points (0.6%) to 6,052.85.

Nvidia slumped by 2.6% amid news a Chinese regulator has launched an investigation into whether the chipmaker violated the country's antimonopoly laws. The weakness on Wall Street also came as traders looked ahead to the release of closely watched U.S. inflation data later in the week.

There's an expectation that the Federal Reserve will lower rates by another 25 bps next week, there is some uncertainty about whether the central bank will continue cutting rates early next year.

Telecom stocks were under pressure dragging the NYSE Arca North American Telecom Index down by 1.7%. Utilities stocks showed significant weakness as reflected by the 1.6% loss by the Dow Jones Utilities Average. Brokerage and banking stocks also saw notable weakness while gold stocks moved sharply higher along with the price of the precious metal.

Asia-Pacific stocks turned in a mixed performance, Japan's Nikkei 225 Index crept up by 0.2% and Hong Kong's Hang Seng Index spiked by 2.8%, South Korea's Kospi plunged by 2.8%. European stocks moved mostly higher on the day. The French CAC 40 Index advanced by 0.7% and the U.K.'s FTSE 100 Index rose by 0.5%, although the German DAX Index bucked the uptrend and dipped by 0.2%.

In the bond market, treasuries moved to the downside, giving back ground following recent strength. As a result, the yield on the benchmark ten-year note, which moves opposite of its price climbed 4.8 bps to 4.19%.

Powered by Capital Market - Live News