US markets experienced a strong rally on Thursday, driven by investor enthusiasm for cyclical stocks expected to benefit from an accelerating economy. The Dow Jones Industrial Average surged over 450 points, reflecting renewed confidence in sectors like financials, industrials, and retail. Meanwhile, technology stocks faced mixed outcomes, with Nvidia shares stabilising after better-than-expected earnings but weaker revenue growth momentum. As market participants reassessed economic prospects, small-cap stocks and select outperformers like Snowflake led gains, while concerns about antitrust issues and slowing growth weighed on giants such as Alphabet and Amazon.

Key Takeaways

  • Dow Gains Over 450 Points as Cyclical Stocks Lead the Market: The Dow Jones Industrial Average climbed 461.88 points, or 1.1%, to close at 43,870.35, as investors rotated into cyclical sectors poised to benefit from economic acceleration. Key contributors included industrial powerhouse Caterpillar, financial giant Goldman Sachs, and retailer Home Depot, reflecting broad optimism about economic prospects. The Russell 2000, a barometer for small-cap stocks, surged 1.8%, further emphasising the shift toward sectors tied to domestic growth.
  • S&P 500 Rises, While Nasdaq Posts Marginal Gain: The S&P 500 added 0.5%, closing at 5,948.71, supported by strength in industrials and financials. Meanwhile, the tech-heavy Nasdaq Composite posted a minimal gain of 0.03%, ending at 18,972.42. Nvidia saw a 0.5% increase after reporting strong third-quarter earnings of $35.08 billion—a 94% year-over-year growth—though concerns over slowing revenue momentum capped gains.
  • Bitcoin Hits Record High Amid Renewed Optimism: Bitcoin soared to a fresh intraday all-time high, crossing the $98,000 mark for the first time late Wednesday. This milestone reflects growing investor confidence in cryptocurrencies amid expectations of increasing adoption and positive regulatory developments.
  • European Markets Snap Losing Streaks with Modest Gains: The pan-European Stoxx 600 rose 0.47%, led by a 1.64% jump in insurance stocks. The FTSE 100 climbed 0.79%, adding 64.20 points to close at 8,149.27, while Germany’s DAX rose 0.74%, supported by gains in industrial stocks. France’s CAC 40 added 0.3%, ending a two-day losing streak. However, British sports retailer JD Sports plummeted 15.5% after warning that annual profits would come in at the lower end of guidance due to subdued consumer spending.
  • Asian Markets Slide Amid Nvidia Results and Adani Troubles: Asian markets broadly declined on Thursday as investors digested Nvidia’s earnings and news of fraud allegations against Adani Group’s chairman. Japan’s Nikkei 225 fell 0.85% to 38,026.17, while South Korea’s Kospi slipped 0.33% to 2,480.63. Shares of Adani Group companies plunged sharply, with Adani Enterprises falling 19%, Adani Green Energy tumbling 18.09%, and Adani Ports losing 15%. Despite the regional losses, China’s CSI300 edged up 0.09% to 3,989.3.
  • US Jobless Claims Hit Seven-Month Low as Labor Market Sends Mixed Signals: Initial claims for state unemployment benefits fell to 213,000 for the week ending Nov. 16, the lowest level since April and below Wall Street’s forecast of 219,000. However, continuing claims climbed to 1.908 million, the highest since late 2021, reflecting challenges in finding new jobs. Conflicting regional manufacturing data added to the mixed picture, with the Philadelphia Federal Reserve index dropping to -5.5 while the Kansas City Fed showed improving future expectations.
  • 10-Year Treasury Yield Rises Amid Conflicting Economic Signals: The 10-year Treasury yield edged higher by 2 basis points to 4.428%, while the 2-year yield gained nearly 5 basis points to 4.355%. Investors weighed mixed economic data, including the drop in weekly jobless claims alongside a rise in continuing claims. Additionally, a decline in the Conference Board’s Leading Economic Index by 0.4% in October underscored persistent concerns about economic headwinds, even as the labour market showed resilience.
  • Oil Prices Surge Amid Escalating Russia-Ukraine Tensions: Oil prices jumped on Thursday as geopolitical tensions overshadowed a larger-than-expected increase in US crude inventories. Brent crude rose $1.44, or 1.98%, to $74.25 per barrel, while West Texas Intermediate climbed $1.35, or 1.96%, to $70.10 per barrel. Escalation in the Russia-Ukraine conflict, including the use of intercontinental ballistic missiles, drove concerns over global energy stability.

FX Today

  • EUR/USD Under Pressure Amid Weak Consumer Confidence: The EUR/USD pair remained subdued on Thursday, trading near 1.0479, as weak consumer confidence data from the Eurozone weighed on sentiment. The European Commission reported a decline in the consumer confidence indicator to -13.7 in November, further highlighting the region’s economic struggles. The pair continues to trade below key moving averages, with immediate resistance at 1.0574 (50-period SMA), while support is seen at 1.0450, followed by the psychological level of 1.0400.
  • GBP/USD Struggles to Rebound Amid Mixed Sentiment: GBP/USD hovered around 1.2596 on Thursday, showing little sign of recovery from recent declines. The pair faces resistance at 1.2690 (50-period SMA), while support at 1.2550 holds firm. Continued selling pressure reflects caution among investors as market participants assess mixed economic signals from the US and the UK. A decisive break below 1.2550 could open the door to further losses, targeting the 1.2500 and 1.2450 levels.
  • USD/JPY Holds Steady Above Support as Yields Edge Higher: USD/JPY traded near 154.46, with the pair supported by the broader bullish trend in the US Treasury market. The 10-year Treasury yield rose by 2 basis points to 4.428%, while the 2-year yield gained nearly 5 basis points to 4.355%. Immediate resistance for the pair is seen at 154.88, with further levels at 155.50. On the downside, key support lies at 154.00, followed by the 200-period SMA at 152.15.
  • AUD/USD Remains Under Pressure Amid Risk-Off Sentiment: AUD/USD traded at 0.6513 on Thursday, reflecting a lack of momentum as the pair struggled below key resistance at 0.6530 (50-period SMA). Further resistance is seen at 0.6549 (100-period SMA), while support remains at 0.6500 and 0.6450. Continued bearish sentiment reflects concerns over global economic uncertainty and commodity-related market pressures, keeping the pair in a consolidation phase.
  • Gold Consolidates Below Resistance Amid Mixed Signals: Gold traded at $2,671, marking a slight decline of 0.01% on Thursday. The metal remains range-bound, with resistance at $2,678 (50-period SMA) proving difficult to breach. A break above this level could open the path to $2,685 and $2,700, while support remains at $2,650 and $2,625. The lack of significant movement reflects ongoing caution among traders, with geopolitical tensions and Federal Reserve policy speculation influencing the market. Gold’s technical outlook suggests a neutral to bearish bias unless it decisively breaks above key resistance levels.

Market Movers

  • Snowflake Surges on Strong Earnings and Upgraded Guidance: Snowflake (SNOW) rallied 32% after reporting Q3 revenue of $942.1 million, exceeding the consensus estimate of $898.6 million. The company also raised its full-year product revenue forecast to $3.43 billion from the prior $3.36 billion, driving investor optimism.
  • Super Micro Computer Rallies on Compliance Plan: Super Micro Computer (SMCI) surged over 15%, leading gainers in the S&P 500 and Nasdaq 100. The stock rose after the company submitted a compliance plan to Nasdaq, assuring investors it could meet filing requirements within the extension period for its 2024 annual report.
  • Dream Finders Homes Soars on Index Addition: Dream Finders Homes (DFH) gained over 9% following the announcement that it will replace Haynes International in the SmallCap 600 before trading on Monday, November 25, boosting its visibility among investors.
  • Amentum Holdings Gains on Positive Analyst Coverage: Amentum Holdings (AMTM) climbed more than 10% after Raymond James initiated coverage on the stock with an “outperform” rating and set a price target of $30, fuelling investor interest.
  • Deere & Co Beats Earnings Estimates: Deere & Co (DE) jumped over 8% after reporting Q4 net income of $1.25 billion, surpassing the consensus estimate of $1.06 billion, boosting confidence in the industrial sector.
  • Dell Technologies Advances on Outperform Rating: Dell Technologies (DELL) rose more than 3% after Evercore ISI added the stock to its tactical outperform list with a price target of $150, reflecting strong expectations for the company’s growth trajectory.
  • Alphabet Slides on Antitrust Developments: Alphabet (GOOGL) fell over 4%, leading decliners in the S&P 500. Antitrust enforcers suggested in a court filing that Google should divest its Chrome browser due to concerns about market dominance.
  • Amazon Faces Pressure from EU Investigation: Amazon.com (AMZN) declined more than 2% after reports indicated the company might be investigated under the European Union’s Digital Markets Act, increasing regulatory scrutiny on the tech giant.

As the trading session concluded, markets showcased a complex blend of optimism and caution. The Dow’s 461-point rally reflected investor confidence in cyclical stocks like Goldman Sachs and Caterpillar, while the S&P 500’s modest gain highlighted selective strength in key sectors. However, the Nasdaq’s marginal increase underscored ongoing concerns around technology stocks, with Alphabet and Amazon weighed down by antitrust fears. European markets snapped losing streaks, lifted by industrial gains, despite JD Sports’ 15.5% plunge on profit warnings. Meanwhile, Bitcoin reached an all-time high above $98,000, and oil prices surged nearly 2% as geopolitical tensions escalated between Russia and Ukraine. As the week progresses, attention shifts to economic data and Federal Reserve signals, with mixed labour market indicators and rising Treasury yields painting an uncertain path forward for global markets.