On Wednesday (November 24), the U.S. dollar rose against G10 currencies across the board, hitting a 16-month high against the euro and a nearly five-year high against the yen, as investors bet that the Fed will tighten monetary policy faster than other central banks. As the yields of the U.S. dollar and U.S. bonds rose, spot gold hit the lowest level since November 4 at $1,787.70 per ounce. Oil prices are basically stable, because investors remain skeptical about the effectiveness of the US-led strategic oil reserve release and turn their attention to the next steps of oil-producing countries.
U.S. stocks rose on Wednesday, and investors got rid of the worries about underweights that were highlighted in the minutes of the Fed’s last meeting. The S&P 500 index closed up, regaining the short-term decline after the Fed meeting minutes were announced. Real estate and energy stocks led the gains; the sales of new homes in the United States increased in October and house prices hit record highs; the Nasdaq 100 index, which has a relatively high technology stake Outperformed other major benchmark indexes.
Emily Roland, co-chief investment strategist at Hancock Investment Management, said that we must be cautious when we increase our holdings. We hope to hold some cyclical stocks to keep up with this wave of continuous rebound and recovery, but we also want to step on the brakes a little. Marvin Loh, a global macro strategist at State Street Corporation, said that today’s data shows that the job market is quite good. If there are signs that the job market is healing itself faster, there will be a possibility of interest rate hikes in the second half of next year. Having said that, we are already pricing in the possibility of interest rate hikes in mid-2022 and are starting to consider May 2022, so I think it is unlikely to be much more radical.
