On Wednesday, major U.S. stock indices showed mixed performance. The Dow Jones Industrial Average reached a record high for the second consecutive day as Wall Street anticipated an end to the prolonged U.S. government shutdown.
**U.S. Stocks** At market close, the Dow rose 326.86 points (0.68%) to 48,254.82, while the Nasdaq fell 61.84 points (0.26%) to 23,406.46. The S&P 500 edged up 4.38 points (0.06%) to 6,850.99. Airline stocks broadly advanced, with United Airlines (UAL.US) gaining 5%. Advanced Micro Devices (AMD.US) surged 9%, while Oracle (ORCL.US) dropped nearly 4%. The Nasdaq Golden Dragon China Index declined 1.46%, with Alibaba (BABA.US) down nearly 2%.
**European Stocks** Germany’s DAX 30 climbed 295.98 points (1.23%) to 24,392.23, and France’s CAC 40 rose 85.01 points (1.04%) to 8,241.24. The UK’s FTSE 100 inched up 8.65 points (0.09%) to 9,908.25. The Euro Stoxx 50 gained 61.35 points (1.07%) to 5,787.05. Spain’s IBEX 35 jumped 210.40 points (1.28%) to 16,609.50, while Italy’s FTSE MIB added 351.12 points (0.79%) to 44,790.00.
**Crude Oil** Oil prices posted their steepest decline since June amid signs of market weakness and OPEC’s warning that global supply could outstrip demand sooner than expected. WTI crude futures fell 4.2% to around $58.50 per barrel, erasing gains from the prior three sessions. The U.S. benchmark briefly entered a contango structure for the first time since February, signaling oversupply concerns. Brent crude for January delivery dropped 3.8% to $62.71.
**Cryptocurrencies** Bitcoin declined 1.3% to $101,743.80, while Ethereum dipped 0.12% to $3,412.13.
**U.S. Dollar Index** The dollar index, tracking the greenback against six major currencies, rose 0.05% to 99.495. The euro slipped to $1.1586 from $1.1590, and the pound weakened to $1.3130 from $1.3172. The dollar strengthened against the yen to ¥154.72 from ¥154.09 but softened against the Swiss franc (CHF 0.7978) and the Canadian dollar (CAD 1.3998).
**Precious Metals** Spot gold climbed 1.64% to $4,194.49 per ounce.
**Macro Highlights** - **Hassett Open to Fed Chair Role, Advocates Larger Rate Cuts**: White House economic advisor Kevin Hassett expressed willingness to succeed Jerome Powell as Fed chair, urging deeper rate cuts in December. He criticized Powell’s cautious stance amid the shutdown and softer inflation data, endorsing a 50-basis-point reduction. - **Fed’s Collins Favors Holding Rates Steady**: Boston Fed President Susan Collins signaled high hurdles for further cuts, citing persistent inflation risks. She emphasized maintaining current rates until labor market deterioration becomes evident. - **Government Reopening Could Take Days**: While the shutdown’s end is near, full operational recovery may take a week or longer due to backlogged payroll updates, delayed permits, and contract approvals. - **Fed Accelerates Tailored Payment System**: Governor Christopher Waller announced plans for a risk-customized payment platform by Q4 2024, aiming to streamline access to Fed services. - **October Economic Data May Be Lost**: The White House warned that October CPI and jobs reports might never be released due to shutdown disruptions, potentially leaving policymakers in the dark. - **U.S. Card Spending Hits Near Two-Year High**: Bank of America data showed October card spending rose 2.4% year-over-year, driven by affluent households and price increases.
**Corporate News** - **Waymo Launches Highway Robotaxi Service**: Alphabet’s (GOOGL.US) Waymo became the first U.S. company to offer autonomous rides on highways, expanding its service in San Francisco, Phoenix, and Los Angeles. The move marks a key step in its competition with ride-hailing and traditional taxi firms.
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