Post by : Bianca
Haleem
GCC stock markets had a varied reaction on Tuesday, observing mixed trends as investors assessed Monday’s strong performance of US stocks, which was spurred by hopes regarding a potential Federal Reserve interest rate cut.
The Dubai Financial Market showed a slight decline, while the Saudi Tadawul remained steady, both reflecting the cautious sentiment in the region. Meanwhile, Bahrain’s index recorded a marginal increase.
Markets in the US experienced a robust surge on Monday as the Thanksgiving holiday approached, with the S&P 500 climbing 1.5% to 6,705.12, the Dow Jones gaining 0.4% to 46,448.27, and the Nasdaq soaring 2.7% to 22,872.01. Notably, tech stocks led this charge, particularly Alphabet, which rose 6.3% thanks to buzz around its Gemini AI model, alongside Nvidia which increased by 2.1%.
Investors are now closely monitoring the Fed’s anticipated decisions, with an 85% probability of a rate cut in December, up from 71% last week. The forthcoming US wholesale inflation data, projected to reveal a 2.6% annual growth, will be crucial in influencing this decision. A higher-than-expected figure could temper expectations for easing at the Fed.
Commodities reflected a degree of caution; US crude oil prices declined by 28 cents to $58.56 a barrel while Brent fell by 33 cents to $62.39 a barrel. Currency exchanges were stable, with the dollar slightly weakening to 156.81 yen and the euro dipping to $1.1517. Bitcoin's value fell by 1.1% to $88,200, a stark contrast from nearly $125,000 last month.
Global investors are now navigating a challenging landscape, balancing optimism for a looser monetary policy in the US with inflation concerns, all while keeping an eye on the erratic movements in technology and AI sectors.
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