Spreadex Market Update
ARM Holdings Surges 29% On AI Optimism
Equities
The S&P 500, experienced a slight decline, closing down by 0.08% at 5,022.49 points on Monday after the index had previously breached the 5,000-point threshold, an event underpinned by optimism over potential Federal Reserve policy adjustments.
The Dow Jones Industrial Average, however, bucked the trend by gaining 0.35%, closing at 38,807.45 points, as traders speculated on the potential impact of the Consumer Price Index (CPI) and Producer Price Index (PPI) data on Federal Reserve policy.
ARM Holdings shares closed at 148.97 USD, a substantial rise of 33.76 USD or 29.30%. The wild moves in ARM's stock price follows their recent earnings report and a strong positive outlook in the technology and AI sectors.
The AI optimism spread to Nvidia, which saw its market capitalisation momentarily eclipse that of Amazon, before settling back. Nvidia ended the trading session slightly up by 0.16%, whereas Amazon recorded a 1.2% decline.
The UK's FTSE 100 showed resilience, maintaining a nearly flat performance to close at 7,573.69 points.
AstraZeneca's stock fell by 2.7% after Barclays revised its price target downward. This adjustment was a response to trimmed earnings forecasts, contributing to the pharmaceutical sector's overall 2.2% decline.
Meanwhile, the real estate sector witnessed notable activity as UK Commercial Property REIT's shares jumped 4.8% on news of a potential £924-million acquisition by Tritax Big Box, despite Tritax's own shares declining by 4.0%.
Frasers Group also captured investor attention by announcing a new share buyback programme valued at no more than £80 million, a move that bolstered its stock by 5.0%.
Forex & Commodities
Gold prices experienced a minor downturn, decreasing by 0.2% to $2,020.97 per ounce, as investors awaited US inflation data and Federal Reserve officials' remarks, which are expected to influence the central bank's interest rate decisions. The Federal Reserve's upcoming decisions are particularly in focus, with a Reuters poll predicting a modest rise in January CPI.
Oil prices edged higher due to concerns over potential supply disruptions caused by Middle East tensions, yet gains were capped by the uncertainty surrounding US interest rate cuts and their impact on fuel demand. Brent crude increased by 31 cents to $82.31 a barrel, and US West Texas Intermediate crude rose 36 cents to $77.28 a barrel.
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
SEARCH FOR AN ARTICLE:
Enter a keyword and search for all relevant articlesMARKET ANALYSIS
RECENT POSTS
DISCLAIMER
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.
No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.
The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.
