Yesterday marked the 55th record for the S&P 500, which closed up 0.05% at 6,047 points, while the Nasdaq gained 0.31%, finishing at 22,229 points. The market remains buoyant following a strong performance in November, fueled by optimism surrounding pro-market policies anticipated from the new administration and potential economic growth. Analysts suggest that December historically tends to be favorable for stock performance, further supported by expectations of a “Santa Claus rally.” As we move forward, traders will continue to monitor labor market data and Federal Reserve communications for insights into future monetary policy adjustments.
In the oil market, WTI crude bounced nearly 3%, approaching $70 per barrel. Oil prices have been trading within a narrow range of $66 to $72 for most of the past three months. Recent tensions, including ongoing conflicts in the Middle East and warnings from Russia regarding potential military actions, have contributed to a risk premium in oil prices. However, the market remains cautious as we await further clarity on OPEC+ production strategies.
In South Korea, President Yoon Suk Yeol declared a state of emergency martial law nationwide, citing threats from “communist forces” and accusing the opposition of undermining government functions and aligning with North Korea. This declaration has led to the South Korean won dipping to a two-year low below 1,440.
On the cryptocurrency front, the market continues to push forward, with the global market capitalization reaching $3.7 trillion as the probability of a Federal Reserve rate cut in two weeks stands at around 75%. This favorable outlook is expected to benefit both crypto equities and markets in China.