US Markets Rebound: Dow Gains 322 Points, Nasdaq and S&P Rise Above 1% Each

 

US Markets LIVE, 21 Dec 2023: The US markets opened higher on Thursday, recovering from the sharp decline in the previous session. The sentiments were uplifted due to a fall in Treasury yields and healthy guidance from chipmaker Micron.

The  Dow Jones Industrial Average (DJIA) opened higher by 143.32 points at 37225.32, while the S&P 500 index made a positive opening of 25.94 points and opened at 4724.29. The Nasdaq Composite index also opened a gap-up by 145.2 points at 14923.14.

 

US Markets Live Today

 

US Markets at 11.25 a.m. EDT, Dow Jones extended its early gains and is trading higher by 230.84 points or 0.62 percent at the 37312.84 level while the S&P 500 is trading almost higher by 30.29 points or 0.64 percent at 4731.48 levels. The tech-heavy Nasdaq Composite Index has slightly trimmed its early gains but is trading higher by 118.33 points or 0.80 percent at 14896.27 levels. 

 

US Markets News

 

The US equity benchmarks rebounded on Thursday after major losses in the previous session. The indices are heading for a significant gain, as the long-term Treasury yield hit its lowest level since July. The 10-year Treasury yield, which closed at 3.848% on Wednesday, hit more than a five-month low at 3.828% in the early trade. 

The US markets resumed their rally after a pause and all three indexes are heading for solid gains in December as well as this year amid growing optimism that the US Central Bank will start reducing rates from early next year. According to the Fed Rate Monitor Tool, there is around a 70% chance that the Fed will reduce 25 bps points as early as March.

Investors were encouraged as the President of the Philadelphia Federal Reserve expressed on Wednesday the possibility of lower interest rates for short-term loans in the next year. Investors are now looking ahead to the PCE index data on Friday,  the Fed’s preferred inflation gauge, for more clues on the interest rate cut trajectory.

On the economic front, the Gross Domestic Product (GDP) growth for the third quarter was revised down to 4.9% from the earlier reported 5.2% growth rate, but still, the US Q3 GDP remains the fastest pace of expansion since the fourth quarter of 2021. The US economy grew at a 2.1% pace in the second quarter.

The number of Americans filing for the new unemployment benefits rose slightly by 2000 to 205000, for the week ended 16 December.

 

US Stocks In News

 

The vehicle retailer CarMax Inc reported better-than-expected third-quarter earnings and its share price gained more than 6% on Thursday.

The shares of Micron Technology gained more than 6% after the chipmaker reported strong-than-expected quarterly earnings and offered positive guidance that exceeded analyst’s estimates.

The shares of Salesforce gained around 2% after the stock was upgraded by Morgan Stanley.

Nike is trading higher by 0.55% ahead of the quarterly results scheduled after the closing bell.

 

Crude Oil Prices

 

Crude oil prices are trading lower on Thursday after a surprise increase in US crude inventories. On Wednesday, the US Energy Information Administration announced US crude inventories rose more than expected amid increasing concerns about demand at the world’s largest consumer.

The US WTI crude trades lower by 0.77 % at $73.65 per barrel, while London-based Brent crude oil is also down by 0.70% at $79.15 per barrel.

 

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US Markets at Close on 21 Dec

 

The US markets extended their early gains and closed higher on Thursday. The markets are heading for an eighth consecutive week of gains, as investors bought shares on the dip following a selloff a day earlier. The Dow Jones Industrial Average (DJIA) gained 322.35 points or 0.87% and closed at 37404.35, while the S&P 500 index advanced 48.40 points or 1.03% and finished at 4746.75. The tech-heavy Nasdaq composite index jumped 185.92 points or 1.26% and settled at 14963.87.

 

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