I told you so. I was correct in the assessment of how Terawulf traded on Friday; read on to find out why.
Today’s market session was relatively subdued, as investors await the Federal Reserve’s statement on December 18th. Current market projections suggest a 95% probability of a 0.25% rate cut, reflecting confidence that monetary easing is on the table. However, what holds greater significance is the forward guidance expected from Federal Reserve Chair Jerome Powell. Most analysts anticipate the Fed will signal a pause in rate changes following this cut, providing clarity on its long-term monetary policy outlook.
This cautious sentiment has contributed to light trading volumes and muted movements across major indexes, highlighting the market’s focus on the central bank’s next steps.
Dow Jones Industrial Average (DJIA)
The Dow slipped by 0.25%, closing at 35,945.98, continuing a streak of recent declines. The index faced pressure from declines in industrial and consumer stocks, with the overall market awaiting clarity on potential interest rate cuts.
NASDAQ Composite
The NASDAQ Composite rose 1.14% to close at 15,408.32, driven by strong performances in technology stocks. Gains were particularly evident in semiconductor companies, with Broadcom seeing notable strength, likely linked to investor optimism about AI and advanced chip developments.
S&P 500
The S&P 500 increased modestly by 0.27%, closing at 4,511.04. Sector performance was mixed, with technology and consumer discretionary leading gains, while energy and utilities lagged. The index’s rise was supported by resilient earnings in key sectors.
Russell 2000
The small-cap Russell 2000 index advanced 0.61% to end at 1,835.73. Small-cap stocks benefited from renewed interest as investors positioned themselves for potential rate cuts, which could improve financing conditions for smaller companies.
Market Sentiment
The overall session was relatively subdued, reflecting investor caution as markets anticipate the Federal Reserve’s announcement. The expectation of a 25 basis point rate cut has fueled optimism, though many remain hesitant to make significant moves until confirmation. Trading volumes were slightly below average, indicative of a “wait-and-see” approach.
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