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S&P Futures Tick Lower Ahead of FOMC Meeting Minutes and U.S. JOLTs Report

S&P E-Mini futures trending down

According to the latest reading on U.S. job openings following the release of the Federal Reserve’s December Policy, the March S&P 500 E-Mini futures are trending down are trending down 0.34% this morning. As seen in Tuesday’s trading session, the major indexes of Wall Street ended up getting mixed. Hence, the benchmark S&P dropped to a 1-week-low. Moreover, the tech-heavy Nasdaq 100 fell to a 2-week-low.

Changes Seen Over the Stocks

The Barclays downgraded the stock to Underweight from Equal Weight where the price target was seen to be $160. This all resulted in Apple Inc. dropping over -3%. The Bloomberg News reported that ASML Holding NV canceled some of its shipments. The shipments were of the chip-making machines to China as requested by President Joe Bidden. The Advanced Micro Devices Inc descended about -6 %. Not only that, but the Intel Corporation saw a downgrade of -4 %. Goldman Sachs removed the stocks from its U.S. Conviction List, there was a drop seen in the Boeing Co of about -3%. Moderna Inc hiked to +13% and was considered the top percentage gainer.

“It’s not uncommon for markets to pause to digest a bull run of the magnitude experienced in the fourth quarter just ended. It would appear to us to make good sense for markets to pause considering the run-up in stock prices,” Oppenheimer Asset Management’s Chief Investment Strategist John Stoltzfus said.

Economic Data observation

When the economic data on Tuesday was investigated, it was found that the U.S. S&P Global Manufacturing PMI was lower than expected to a 6-month low of 47.9, as observed in December. It was expected to be 48.2. It was also observed that in November, the spending on U.S. constructions rose to +0.4 % m/m when it was expected to be +0.5 % m/m.

The head of the International Monetary Fund (IMF) said that the U.S. economy is “definitely” on track for a soft landing. The credit was given to the decisiveness of the Federal Reserve in the observed curbing of inflation. A 10.9% probability has been seen in the U.S. rate futures of a 25-basis point rate cut. This was cut at the Fed’s Monetary Policy Committee meeting. The cut-rate was expected to be 66.4% probability of a 25-basis point rate cut.

The steps taken by the investors

Now, the investors are more likely to focus on the U.S. Jolts Job Opening Data. On average, the economists expect the November Jolts Job Opening Data will come in at 8.850 million. The previous estimation was believed to be 8.733 million. Economists foresee the U.S. ISM Manufacturing PMI will reportedly stand at 47.1. This was expected to be 46.7. When you look at the bond markets, the U.S. 10-year rates are 3.980% up +0.84%.

The International Stocks

As seen this morning, the EURO Stoxx 50 future is down by -0.93%. Food and beverage stocks saw a hike, whereas construction and material stocks saw a bad performance. In December, Germany saw an unemployment rate of 5.9%. The change in unemployment came to 5K but was expected to be at a minimum of 20k. Even though the Japanese market was closed for the holidays, China’s Shanghai Composite Index closed up to +0.17%.

China’s Shanghai Composite Index

China’s Shanghai Composite Index closed higher than expected. The country’s gaming industry was overlooked indicating that the government is going to experience a backlash against the new regulations. Hence, Feng Shixin was removed from his position as head of the publishing unit at China’s Publicity Department. This department runs the gaming industry of the country. Artificial intelligence and Information technology Stocks underperformed too.

“Putting together December Caixin and official PMI reflects further softness in domestic demand conditions and slowing service sector, manufacturers focus on export market competition,” J.P. Morgan analysts said in a note.

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