Technology Rally Slows as US Holidays Approach

Coming off a spectacular surge for US tech stocks, that saw the NASDAQ pop 2.7% as the AI trade roared back to life, overseas markets have been posting more moderate gains. The Hang Seng rose 0.7%, the Nikkei was flat, the DAX is up 0.6% and the FTSE is up 0.4%.

US index futures are flat to down 0.1% as stocks digest yesterday’s gains and the Thanksgiving holiday approaches. The US Dollar is backsliding bit enabling Gold to climb 0.8%, Silver to jump 1.2%, and the Euro to rise 0.3%. The Loonie is steady today. Commodity action is very mixed with Copper up 2.0% and Crude Oil down 2.0%. Bitcoin is down 1.7%.

Catchup US economic reporting continues today. Retail Sales for September (0.2% vs Street 0.4% and previous 0.6%) showed slowing.  Producer prices for September (2.6% vs Street 2.7% and previous 2.9%) indicated inflation remains benign. Combined, these indicators support the case for the Fed continuing to cut interest rates in future. 

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