Tuesday's Markets Update (November 28, 2023)

28 Nov 2023 by rate3

On Tuesday, the dollar fell, and Nasdaq was up while traders were considering new data and comments from the Fed. Governor Waller expressed confidence in the current policy, while Governor Goolsbee noted significant progress on inflation, and Governor Bowman's hawkish stance seemed more conditional than before. Consumer confidence improved for the first time in four months, and home prices hit a record high. Meanwhile, BTC surged above 38K, continuing to edge towards 40K under sustained bullish pressure, exploiting rising positive sentiments on stock markets and in an expectation of the traditional Santa Claus rally.

Details

In November, the Dallas Fed's service sector index for Texas improved to -11.6 from a ten-month low of -18.2 in October indicating that services sector continues to degrade but a bit slower. However, employment indicators suggested growth, with the employment index rising and part-time employment increasing. Input price pressures eased while selling price pressures slightly increased.

Currencies

The dollar index reached its lowest point in 15 weeks, falling to almost 102.5 on Tuesday (-3% in November). Recent Fed speeches have led to the belief that the Fed is done with raising interest rates and may start cutting them next year. Board Member Waller expressed confidence in the current policy for slowing the economy and returning inflation to 2%. Governor Bowman anticipates further policy tightening but her statement was less assertive than before.