U.S. Equities Digest Weakness In Asia Markets

November 30, 2020 09:35 AM
Record Covid cases helped boost Tech and Healthcare stocks late last week
The U.S. dollar continues to slip
Fed Chair Powell set to testify before Congress tomorrow
Stock Market Update for Traders

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Friday's Close

E-mini S&P 500 (December): Settled 3636.50, up 9.25 on Friday and 82.25 on the week

E-mini Nasdaq-100 (December): Settled at 12,257.50, up 105.25 on Friday and 351.75 on the week

U.S. benchmarks have battled through the ‘Covid-19 anti-gathering Thanksgiving narrative’ and are all generally holding within 1% of their respective all-time highs. Tech and Healthcare finished out the week as the strongest sectors, and the NQ performed much better than the S&P. The U.S. set a record on Friday with more than 200,0000 confirmed cases of Covid-19, and this certainly favored Tech and Healthcare, the two sectors that performed best through the thick of the pandemic. We enter the week with a tall question; will this narrative subside and again bring value stocks to the forefront?

The NQ is holding in positive territory at the onset of U.S. hours; however, equity markets overnight have been broadly digesting weakness across Asia, which comes despite good economic data and a weaker U.S. Dollar. The Dollar has been the sacrificial lamb through 2020, and continued weakness has stabilized the global economy through the Covid-19 pandemic. The Dollar Index is forging new two and a half year lows today, with the Euro eyeing the psychological 1.20 mark.

On the economic calendar, Chinese Manufacturing for November last night came in better than expected at 52.1 versus 51.5. Tonight, we look to the private Caixin survey. Both Copper and Platinum are trading in positive territory on the heels of the data. The busy week picks up, and the U.S. Dollar is in the spotlight, tomorrow with Fed Chair Powell testifying before Congress and ISM Manufacturing.

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