S&P 500 opens little changed at 3,730 on New Year's Eve

Wall Street's main indexes trade little changed on Thursday.
US stock markets will close early on New Year's eve.
S&P 500 Energy Index is down nearly 1%.

Eren Sengezer FXStreet

Major equity indexes in the US started the day near Wednesday's closing level as trading volume remains thin on New Year's Eve. As of writing, the Dow Jones Industrial Average was down 0.14% at 30,367, the S&P 500 was losing 0.1% at 3,730 and the Nasdaq Composite was unchanged at 12,863.

Among the 11 major S&P 500 sectors, the Energy Index is down 1% after the opening bell, possibly pressure by profit-taking following this week's strong performance. On the other hand, the Communication Services Index is the top performer in the early trade, gaining 0.4%.

The data published by the US Department of Labor showed on Thursday that the Initial Jobless Claims declined by 19,000 to 787,000 last week but this reading was largely ignored by market participants.

S&P 500 2021 outlook

S&P 500 Price Forecast 2021: Optimism is not inappropriate as bulls could enjoy another 15% winning year.

"The next year appears very positive for equities and the S&P 500," says FXStreet Senior Analyst Joseph Trevisani. "Once the pandemic retreats, deferred global consumer demand should drive a robust expansion in growth."

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

AUD/USD holds above 0.6900 ahead of Fed's Warsh

AUD/USD struggles to capitalize on the previous day's modest bounce from its lowest level since early July and trades above 0.6900 in the Asian session on Friday. Thursday's disappointing Australian jobs data tempered RBA rate-hike bets, capping the Aussie. The US Dollar (USD), meanwhile, is regaining positive traction as this week's hot US CPI and PPI reports keep Fed rate hike bets firmly on the table. This further limits the pair ahead of Fed Chair Kevin Warsh speech.

USD/JPY retakes 158.00, with eyes on Warsh's speech

USD/JPY retakes 158.00 in the Asian session on Friday, holding on the overnight bounce from the vicinity of 157.50, or a one-week low, amid the emergence of some US Dollar buying. This week's hot US CPI and PPI reports lifted Fed rate-hike bets, which, along with stable US bond yields and geopolitical uncertainties, help revive USD demand. Traders, however, remain on high alert amid speculation that authorities will step in to prop up the Japanese Yen, which could cap the currency pair ahead of Fed Chair Kevin Warsh's speech.

Gold eases to $4,150 as traders await Warsh's speech

Gold drifts lower to near $4,150 in the Asian session on Friday, reversing part of the previous day's move up amid reviving US Dollar demand. US inflation data released this week reaffirmed bets for at least one Fed rate hike this year, while US bond yields stabilize after Thursday's steep decline. This, along with geopolitical risks, underpins the safe-haven USD, which, in turn, is seen weighing on bullion ahead of Fed Chair Kevin Warsh's speech.

Ethereum reclaims $2,400 as PPI hits 6.3% and yields fall

Ethereum (ETH) is back above $2,400 on Thursday, rebounding from a brief decline toward $2,340, which was sparked by an upside surprise in the US wholesale inflation report. The Producer Price Index (PPI) increased 1.3% monthly and 6.3% annually in September, far above expectations of 0.5% and 5.3%, respectively.

US midterms put fiscal policy under the spotlight, treasury sell-off raises risk

The US will hold its midterm elections - a de facto referendum on the Trump administration - on 3rd November after two years shaped by rising trade protectionism, attacks on Federal Reserve independence and, since the spring, the Iran war. Republicans are expected to take a heavy electoral hit.

Everyone's dumping Gold after hot US inflation. Here's why $4,100 could be a floor, not a cliff

Gold (XAU/USD) is recovering from a sharp sell-off triggered by hotter-than-expected United States (US) inflation data released on Wednesday. The precious metal briefly plunged toward $4,073 as investors increased their bets on further Federal Reserve (Fed) interest rate hikes before recovering as US Treasury yields and the US Dollar (USD) reversed their initial gains.