Nasdaq Today: US Central Bank Drives Rally; What’s Next?
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Why did the US market rally today?
US stocks jumped today to end a 3-day losing streak. The US central bank’s chair, Mr. Jerome Powell, highlighted that the US central bank might slow down the pace of interest rate hikes by looking at the inflation data.
Key Details:
- US Stocks rallied amid anticipation of a weakening pace of interest rate hikes by its central bank
- Analysts now estimate a 75% chance that the Fed will raise interest rates by 0.50% during its December meeting
- S&P 500 index closed above its 200-day moving average for the first time since April - sending a positive signal for the coming days
- For November, the S&P 500 climbed 5.4%, the Dow added 5.7% and the Nasdaq increased 4.4%.
View SPY ETF (S&P 500 Index-based ETF), QQQ (Nasdaq 100 index-based ETF), and DIA (Dow Jones Index-based ETF)
US Stock Market today (30 November 2022)
| Index | Price | Change | % Change |
|---|---|---|---|
| Dow Jones Industrial Average | 34,590 | Up 737 | 2.18 |
| NASDAQ 100 | 11,468 | Up 484 | 4.41 |
| S&P 500 | 4,080 | Up 122 | 3.09 |
What led to the rally?
- Fed’s Rate Hike Pace: The rally in the broader markets and the tech-heavy Nasdaq, in particular, can be attributed to Jerome Powell’s indication of slower rate hikes in the future.
- Inflation Slowing Down: The jump in tech stocks was also aided by the news of the pace of inflation slowing down.
- Easing Covid Push: China’s push to accelerate vaccination for the elderly also lent strength to the rally.
Has inflation peaked in the US?
US Federal Reserve’s interest rate actions in 2022
| Month | US Fed Action |
|---|---|
| Oct-22 | 0.75% Hike |
| Sep-22 | 0.75% Hike |
| Jul-22 | 0.75% Hike |
| Jun-22 | 0.75% Hike |
| May-22 | 0.50% Hike |
| Mar-22 | 0.25% Hike |
When is the next US Federal Reserve meeting to discuss an interest rate hike?
The next US Federal Reserve meeting to discuss an interest rate hike is scheduled for December 13-14.
Nasdaq 100 Index’s major movements in 2022
| Date | Nasdaq 100 Index Movement (4% or higher) | Reasons of movement |
|---|---|---|
| 30-Nov | 4.58% | US central bank indicated a slower pace of interest rate hikes from December. |
| 10-Nov | 7.49% | Weakening growth of inflation (October inflation at 7.70% from 8.2% in last month) leading to anticipation of a slower pace of interest rate hike in December led to a rally. |
| 13-Sep | -5.54% | Faster growth of the inflation rate put the fears of faster interest rate hikes among investors leading to a sell-off in stocks. |
| 26-Aug | -4.10% | Comments from Federal Reserve Chair Jerome Powell highlighting aggressive rate hikes to control inflation led to a fall in stocks. |
| 27-Jul | 4.26% | US central bank increased interest rates by 0.75% - as of the expectations. Anticipation of a reduction in the magnitude of the rate hike led to a massive rally. |
| 16-Jun | -4.02% | US Fed’s decision to hike interest rates by 0.75% and the possibility of doing the same in July significantly hurt investors' sentiments. |
| 13-Jun | -4.60% | The fastest acceleration in the Inflation rate to 8.6% since late 1981 dented investors' hope for a slowdown in interest rest rate hikes by US central bank. |
| 18-May | -5.06% | Shrinking profits by major retailers reignited fear of high inflation leading to a fall in stock prices. |
| 05-May | -5.06% | Investors feared that US Fed's interest rate increase might not tame inflation, leading to a fall in share prices. |
| 29-Apr | -4.47% | Results from Big Tech companies including Alphabet and Twitter pointed to a slowdown in online ad businesses, leading to falling in stocks. |
| 03-Feb | -4.22% | Weak earnings by Meta (Facebook) led to a 26% fall in its shares, driving the Nasdaq index down with it. |
US Stock Markets (30.11.22): Stock Wise News & Updates
| US stocks in News (Price Action) | The reason behind the move |
|---|---|
| Adobe rose 6% | Adobe rose yesterday along with other tech stocks driven by a broad rally in the markets after the US central bank indicated a lower pace of interest rate hike in the future. |
| Airbnb rose 7% | Airbnb rose yesterday along with other growth stocks amid a broad rally in the markets. Reports of the launch of an apartment rental service also supported the rally. |
| Alphabet jumped 6% | Alphabet rose yesterday after US central bank indicated a slower pace of interest rate hikes from December. |
| Alphabet jumped 6% | Alphabet rose yesterday after US central bank indicated a slower pace of interest rate hikes from December. |
| Amazon jumped 4% | Amazon's share price jumped yesterday amid reports of it recorded the biggest-ever sales on Thanksgiving weekend. |
| Apple jumped 5% | Apple rose yesterday along with other big tech stocks amid reports of the US central bank scaling back the pace of its interest rate hikes from December. |
| Arcimoto lost 9% | Arcimoto extended its fall yesterday after a 1-for-20 reverse stock split, Share price is down 48% in the last 1 month amid business growth concerns. |
| ARK Genomic Revolution ETF rose 4% | ARK Genomic Revolution ETF price rose yesterday tracking the gains in shares of Pacific Biosciences, Twist Bioscience, and Exact Sciences. |
| ARK Innovation ETF jumped 8% | ARK Innovation ETF price jumped yesterday, driven by gains in the shares of Unity Software, Roku, and Shopify. |
| Cloudflare jumped 10% | Cloudflare rose yesterday along with other tech stocks amid reports of US central bank scaling back the pace of its interest rate hikes from December. |
| Coinbase rose 6% | Coinbase rose yesterday amid reports of supporting the latest Ethereum (ETH)-based NFT gaming studio Altcoin Vulcan Forged (PYR) on its platform. |
| Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2X Shares ETF rose 2% | Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2X Shares ETF price rose yesterday tracking gains in energy shares including Devon Energy. |
| Direxion Daily Semiconductor Bull 3X Shares ETF jumped 18% | Direxion Daily Semiconductor Bull 3X Shares ETF price jumped yesterday, tracking gains in chip shares of Marvell Technology, Nvidia, and QUALCOMM. |
| Direxion Daily Technology Bull 3X Shares ETF jumped 15% | Direxion Daily Technology Bull 3X Shares ETF price rose yesterday driven by gains in the shares of Nvidia, Microsoft, and Apple. |
| Disney rose 3% | Disney share price rose yesterday amid reports of CEO Iger indicating restructuring to cut down costs. |
| DocuSign jumped 6% | DocuSign jumped yesterday along with other beaten-down tech stocks in a short covering-driven rally. Indications by the US central bank about scaling back the pace of interest rate hikes supported the gains. |
| FedEx rose 2% | FedEx rose yesterday over reports of Deutsche Bank increasing its share price target to $217 per share amid a recovery in growth. |
| First Trust Nasdaq Clean Edge Green Energy Index Fund rose 5% | First Trust Nasdaq Clean Edge Green Energy Index Fund price rose yesterday tracking the gains in shares of XPeng, NIO, and Tesla. |
| Global X Lithium & Battery Tech ETF rose 5% | Global X Lithium & Battery Tech ETF price rose yesterday tracking the gains in shares of Albemarle Corporation. |
| HP rose 4% | HP share price rose yesterday after analysts gave thumbs up to solid quarterly earnings and a favorable growth forecast. |
| Intuit jumped 7% | Intuit rose yesterday along with other tech stocks amid reports of the US central bank scaling back the pace of its interest rate hikes from December. |
| Accuray fell 2% | Accuray extended its fall yesterday amid concerns over the growth forecast. The share price is down 10% in the last 5 days, and concerns over China JV's business led to weakness. |
| Atlassian jumped 8% | Atlassian jumped yesterday along with other beaten down tech stocks in a short covering-driven rally. Indications by the US central bank about scaling back the pace of interest rate hikes supported the gains. |
| Invesco NASDAQ 100 ETF rose 5% | Invesco NASDAQ 100 ETF price rose yesterday tracking the gains in shares of Nvidia, Tesla, Alphabet, and Microsoft. |
| Invesco QQQ Trust Series 1 ETF rose 5% | Invesco QQQ Trust Series 1 ETF price rose yesterday tracking the gains in shares of Nvidia, Tesla, Alphabet, and Microsoft. |
| JPMorgan rose 1% | JPMorgan rose yesterday, the share price is now up 8% in the last 1 month amid anticipation of solid growth in the coming quarters. |
| Matterport rose 5% | Matterport witnessed short covering yesterday along with other growth stocks. Share price rose amid overall positivity in the stock market over the US central bank's anticipated scaling back of interest rate hike. |
| Meta (Facebook) rose 8% | Meta (Facebook) gained yesterday after US central bank indicated a slower pace of interest rate hikes from December. |
| Microsoft rose 6% | Microsoft rose yesterday along with other big tech stocks amid reports of the US central bank scaling back the pace of its interest rate hikes from December. |
| Netflix rose 9% | Netflix share price witnessed a rally yesterday amid reports of the US central bank scaling back the pace of its interest rate hikes from December. |
| NIO jumped 22% | NIO share price rose yesterday amid a recovery in China EV stocks after a fall in new covid-19 cases and anticipation of ease in the strict covid-19 management policy. |
| Nvidia rose 8% | Nvidia rose yesterday along with other chip stocks amid reports of US central bank scaling back the pace of its interest rate hikes from December. |
| ProShares Bitcoin Strategy ETF rose 5% | ProShares Bitcoin Strategy ETF price rose yesterday tracking the gains in Bitcoin prices and future volumes. |
| ProShares Ultra Semiconductors jumped 12% | ProShares Ultra Semiconductors ETF price rose yesterday tracking the gains in chip shares of Nvidia and Broadcom. |
| ProShares UltraPro S&P 500 ETF jumped 9% | ProShares UltraPro S&P 500 ETF price rose yesterday tracking the gains in shares of Nvidia, Tesla, Alphabet, and Microsoft. |
| Qualcomm jumped 8% | Qualcomm rose yesterday along with other chip stocks amid reports of the US central bank scaling back the pace of its interest rate hikes from December. |
| Rivian rose 11% | Rivian share price rose yesterday amid a recovery in China EV stocks after a fall in new covid-19 cases and anticipation of ease in the strict covid-19 management policy. |
| Roblox jumped 7% | Roblox rallied yesterday along with other tech stocks amid reports of US central bank scaling back the pace of its interest rate hikes from December. |
| Shopify jumped 10% | Shopify rose yesterday along with other tech stocks amid reports of US central bank scaling back the pace of its interest rate hikes from December. |
| Square rose 9% | Square witnessed a rally yesterday amid reports of US central bank scaling back the pace of its interest rate hikes from December. |
| Tesla jumped 8% | Tesla jumped yesterday amid reports of increasing production from Gigafactory Texasbeaten-downThe share and solid November sales. |
| Twilio jumped 7% | Twilio rose yesterday along with other tech stocks amid reports of US central bank scaling back the pace of its interest rate hikes from December. |
| Unity Software jumped 10% | Unity Software witnessed a rally yesterday driven by reports of US central bank scaling back the pace of its interest rate hikes from December. |
| Vanguard S&P 500 Growth ETF rose 4% | Vanguard S&P 500 Growth ETF price rose yesterday tracking the gains in shares of Nvidia, Tesla, Alphabet, and Microsoft. |
| Workhorse jumped 10% | Workhorse jumped yesterday driven by a broad rally in the market amid reports of US central bank scaling back the pace of its interest rate hikes from December. |
| Zoom jumped 7% | Zoom share price rallied yesterday along with other tech stocks amid overall positivity in markets. Reports of US central bank scaling back the pace of interest rate hikes led to the rally. |
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