FX.co ★ Dow Gives Back Ground But Nasdaq, S&P 500 See Further Upside

In recent trading, major U.S. stock indices have shown a mixed performance, diverging after several upward sessions. On Tuesday, the Nasdaq and S&P 500 continued to gain traction, while the Dow retreated from its record high set on Monday.

The indices demonstrated little movement overall, oscillating on either side of the flat line. The Dow has decreased by 266.89 points, or 0.6%, settling at 44,469.68. Conversely, the Nasdaq has advanced by 91.70 points, or 0.5%, reaching 19,146.53, and the S&P 500 gained 15.04 points, or 0.3%, standing at 6,002.41.

The Dow's decline is partly due to a significant slump in Amgen's shares, dropping 11.4% following investor disappointment over the company's new obesity drug, MariTide. Despite reporting a 20% average weight loss after a year trial, the results failed to meet market expectations.

Market participants are also considering President-elect Donald Trump's recent threats concerning tariffs against Mexico, Canada, and China. Trump, via his Truth Social account, stated plans to impose a 25% tariff on all goods from Mexico and Canada immediately upon assuming office, citing both countries' roles in drug and illegal immigration issues in the U.S.

Furthermore, Trump declared an additional 10% tariff on Chinese goods, attributing it to insufficient efforts by China to curb the flow of drugs, specifically fentanyl, into the U.S.

Investors are anticipating the release of the Federal Reserve's latest monetary policy meeting minutes later today. Insights from the November meeting, which resulted in a 25 basis point interest rate cut, may provide future rate guidance.

Currently, the CME Group's FedWatch Tool suggests a 59.6% probability of another 25 basis point rate cut next month, with a 40.4% likelihood that rates will remain unchanged.

**Sector Overview**

Housing stocks have pulled back significantly, as reflected in the Philadelphia Housing Sector Index's 2.2% decline after reaching its highest close in over a month on Monday. Although oil prices have rebounded, oil service stocks have weakened, leading to a 1.4% drop in the Philadelphia Oil Service Index. Meanwhile, computer hardware and steel stocks are retreating after recent strength, but software stocks continue their upward trend.

**Global Markets**

Overseas markets saw mostly declines in the Asia-Pacific region on Tuesday. Japan's Nikkei 225 fell by 0.9%, while China's Shanghai Composite Index dropped by 0.1%.

In Europe, market indices also experienced losses. The French CAC 40 Index decreased by 0.9%, Germany's DAX Index by 0.7%, and the U.K.'s FTSE 100 Index by 0.5%.

**Bond Market**

In the bond sector, treasuries have surrendered gains from the previous session. Consequently, the yield on the benchmark ten-year note has risen by 5.1 basis points, landing at 4.314%.