Overview
Today's U.S. stock market closed lower as a cautious sentiment prevailed ahead of key economic indicators scheduled for this week. Initially showing gains, the market shifted to a downturn as AI-related stocks exhibited weakness. A noticeable rotation from high-growth stocks to value stocks drove today's trends, with investors moving towards consumer staples and industrials, as well as a continued expansion of interest in the healthcare sector. Experts view this rotation as a positive signal for the broader market as it indicates a diffusion of investor focus from a few large tech stocks to the wider market.
Today's market saw a significant rotation from large tech stocks to more cyclically sensitive sectors such as consumer and industrial stocks, with the healthcare sector also seeing increased interest. Many experts interpret this shift as a positive sign, suggesting a more balanced market distribution.
| Nasdaq Composite | S&P 500 |
| Dow Jones Industrial Average | 1 South Korean won equals |
Major News
Investors are keenly awaiting the economic data releases scheduled for this week. Tuesday will see the release of October and November non-farm payroll figures and the unemployment report, while Thursday will feature the November Consumer Price Index. Analysts expect a 50,000 increase in new jobs for November with an unemployment rate of 4.5%. According to Bloomberg, the market could see a fluctuation of around 0.7% depending on the outcomes of these reports. Meanwhile, within the Federal Reserve, there is a difference of opinion on the current monetary policy stance, with some officials considering it overly restrictive and others viewing it as properly calibrated post recent rate hikes. Despite a mixed performance among large-cap stocks, Tesla saw an uptick following CEO Elon Musk's announcement of unmanned robotaxi testing in Texas.
Tomorrow's Economic Indicators
| Time (KST) | Report |
|---|---|
| 22:15 | U.S. ADP Weekly Employment Change Report |
| 22:30 | U.S. November Non-Farm Payrolls |
| 22:30 | U.S. November Unemployment Rate |
| 22:30 | U.S. October Retail Sales |
| 22:55 | U.S. Johnson Redbook Retail Sales |
| 23:45 | U.S. November S&P Global Manufacturing PMI |
| 23:45 | U.S. November S&P Global Services PMI |
| 23:45 | U.S. November S&P Global Composite PMI |
| Midnight | U.S. September Business Inventories |
General Opinion
The market is closely watching the upcoming economic indicators and the Federal Reserve's policy direction. If employment figures fall short of expectations, there might be increased anticipation for a rate cut at the next Federal Reserve meeting. Conversely, strong employment data could lead to a rise in the dollar value. Investors are adopting a cautious stance ahead of these crucial reports, which may also be influenced by concerns over data quality due to recent governmental operational delays. Overall, participants are expected to be more cautious in interpreting the data and making trading decisions.
