Nasdaq at Record High, EUR/USD Surges Above 1.2000

On Tuesday, the three major U.S. indices closed higher, with Nasdaq 100 rising 187 points (+1.5%) to a fresh record high of 12455.

Trading floor 3

On Tuesday, the three major U.S. indices closed higher, with Nasdaq 100 rising 187 points (+1.5%) to a fresh record high of 12455. The Dow Jones Industrial Average gained 185 points (+0.6%) to 29823 and the S&P 500 added 40 points (+1.1%) to 3662. Technology Hardware & Equipment (+2.7%), Insurance (+2.3%) and Media (+2.3%) sectors led the rally.


Nasdaq 100 Index Daily Chart:


Source: GAIN Capital, TradingView


Approximately 91% of stocks in the S&P 500 Index were trading above their 200-day moving average and 78% were trading above their 20-day moving average. The VIX Index rose 0.2 point (+1.0%) to 20.77.

It is reported that Pfizer (PFE +2.9%) and BioNTech sought regulatory approval for their Covid-19 vaccine in the European Union, which could be approved before year-end.

Regarding U.S. economic data, the ISM Manufacturing Index fell to 57.5 in November (58.0 expected) from 59.3 in October, while construction spending grew 1.3% in October (+0.8% expected). Later today, investors will focus on the November ADP jobs report (+0.43 million jobs expected). The Federal Reserve will release its economic report, the Beige Book.

European stocks were broadly higher. The Stoxx Europe 50 climbed 0.9%, Germany's DAX advanced 0.7%, France's CAC 40 rose 1.1%, and the U.K.'s FTSE 100 jumped 1.9%.

The benchmark U.S. 10-year Treasury yield surged to a 3-week high of 0.9260% from 0.8389% Monday.

WTI crude futures slid 1.7% to $44.55 a barrel. The American Petroleum Institute (API) reported that U.S. crude-oil inventories increased 4.15 million barrels in the week ending November 27 (-2.36 million barrels expected).

Spot gold rallied 2.2% to $1,815 an ounce.

On the forex front, the ICE U.S. Dollar Index dropped 0.7% to 91.19, the lowest level since April 2018.

EUR/USD surged 1.2% to 1.2072, the highest level since May 2018. Official data showed that the eurozone's CPI slipped 0.3% on year in November (-0.2% expected), while German jobless rate fell to 6.1% in November (6.3% expected) from 6.2% in October. Later today, German retail sales for October will be released (+1.2% on month expected).

GBP/USD advanced 0.8% to 1.3427. European Commission President Ursula von der Leyen said it is very clear that they want an agreement with the U.K., despite difficult negotiations.

USD/JPY was little changed at 104.29.

USD/CAD slid 0.5% to 1.2933. Government data showed that Canada's third quarter annualized GDP bounced 40.5% on quarter (+47.9% expected).

AUD/USD climbed 0.5% to 0.7380. The Reserve Bank of Australia kept its benchmark rate unchanged at 0.10% as expected.

More from Indices

From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.