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S&P 500 climbed 0.3%, and Nasdaq-100 futures jumped 0.7%

Economy

Stock futures climbed on Wednesday, driven by strong performances from Salesforce and Marvell Technology, following upbeat quarterly earnings. Futures tied to the Dow Jones Industrial Average rose by 215 points (0.5%), while S&P 500 futures gained 0.3%, and Nasdaq-100 futures advanced by 0.7%.

Salesforce surged 12% after reporting fiscal third-quarter revenue that exceeded expectations, showcasing robust demand in the enterprise software sector. Meanwhile, chipmaker Marvell jumped 14% after surpassing earnings estimates and providing optimistic fourth-quarter guidance, indicating resilience in the semiconductor industry.

This movement follows a mixed session on Wall Street, where the S&P 500 and Nasdaq closed with small gains, while the Dow dipped slightly. The broader market has experienced a modest start to December, contrasting with November’s robust rally, but analysts anticipate a resurgence in momentum. LPL Financial’s George Smith pointed out that December historically sees strong market performance, particularly in the latter half of the month.

However, economic data introduced some caution. ADP’s report revealed that private payrolls grew by just 146,000 in November, missing estimates of 163,000. This signals potential softness in the labor market, with investors now awaiting Friday’s November jobs report for further clarity.

S&P 500 Index Chart Analysis

Based on the provided stock chart, which appears to be a 15-minute candlestick chart for the S&P 500 Index, here’s a brief analysis:

The chart shows a clear upward trend, with higher highs and higher lows indicating bullish momentum over the analyzed period. The index has steadily climbed from a low of approximately 5,855 to a recent high of 6,053.58, suggesting strong buying interest.

Key resistance is observed near 6,050-6,053 levels, as the price has struggled to break above this zone in the most recent sessions. If the index breaches this level with strong volume, it could lead to further upward movement. Conversely, failure to break out may lead to a pullback, with potential support around the 6,000 psychological level and 5,980, where consolidation occurred previously.

The candlestick patterns show relatively small wicks, indicating limited volatility, which could imply steady market confidence. However, the bullish rally could be overextended, warranting caution for traders, especially if any negative catalysts emerge.

In summary, the short-term trend is bullish, but traders should monitor resistance levels and volume for signs of a breakout or reversal. It’s also essential to watch broader market factors, as indices are often influenced by macroeconomic data and sentiment.

The post S&P 500 climbed 0.3%, and Nasdaq-100 futures jumped 0.7% appeared first on FinanceBrokerage.

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Stocks

The Big Divergence in Bullish Percents

Stocks

While the S&P 500 and Nasdaq 100 have been holding steady into this week’s Fed meeting, warning signs under the hood have suggested one of two things is likely to happen going into Q1.  Either a leadership rotation is amiss, with mega cap growth stocks potentially taking a back seat to other sectors, or a risk-off rotation is coming where investors rotate to defensive positions.

A quick review of the Bullish Percent Indexes can help us review how the resilience of the markets can be attributed to the continued strength of the Magnificent 7 and related names.  Today we’ll compare breadth conditions for the S&P 500 and Nasdaq 100, and update some key levels to watch into year-end and beyond.

The S&P 500 Bullish Percent Index is a breadth indicator driven by point and figure charts.  This data series basically reviews 500 point & figure charts and shows what percent of the stocks have most recently generated a buy signal.  I’ve found the Bullish Percent indexes to be most valuable around major market tops, because a downturn in a breadth indicator such as this can only happen if lots of stocks are pulling back in a fairly significant fashion.

Here we’re showing the S&P 500 index for the last 12 months along with the Bullish Percent Index for the S&P 500 as well as the BPI for the Nasdaq 100.  Note that toward the end of September, the S&P 500’s BPI was around 80% while the Nasdaq’s was around 70%.  

Going into this week, the S&P 500’s BPI had pushed down to around 60%, while the Nasdaq 100’s BPI was still around that 70% level.  This change of character is due to the fact that large cap growth stocks have remained largely constructive, while some of the most important breakdowns we’ve witnessed in recent weeks have been in more value-oriented sectors.

This divergence between the two Bullish Percent Indexes tells us that the S&P 500 and Nasdaq 100 have not remained strong because of broad support from a variety of sectors, but more because of concentrated support from a limited number of growth sectors like technology.

As the market is reeling this week in reaction to the Fed’s expectations for further rate cuts into early 2025, we can see that both of the Bullish Percent Indexes have now pushed below the 50% level for the first time since the August market correction.  This means we need to focus on a key “line in the sand” for the S&P 500 and to attempt to better define market conditions.

The SPX 5850 level has been the most important support level in my work, based on the fact that a break below that key pivot point would mean the S&P 500 has made a lower low.  We haven’t seen that sort of short-term weakness since the August pullback.  While the initial downturn post-Fed has pushed the SPX down toward the 5850 level, we would need to see a confirmed break below that point to unlock potential further downside targets.

Our latest video on StockCharts TV breaks down the Bullish Percent Index chart above, along with four key stocks reporting earnings this week.  While those charts will all most likely be affected by this week’s Fed announcement, earnings still matter!  I will be watching important levels of support in all four of those names, and I’d encourage you to leverage the alert capabilities on StockCharts to ensure you don’t miss the next big move!

RR#6,

Dave

PS- Ready to upgrade your investment process?  Check out my free behavioral investing course!

David Keller, CMT

President and Chief Strategist

Sierra Alpha Research LLC

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice.  The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.  

The author does not have a position in mentioned securities at the time of publication.    Any opinions expressed herein are solely those of the author and do not in any way represent the views or opinions of any other person or entity.

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Investing

AI Market Forecast: Top Trends That Will Affect AI in 2025

Investing

The United Nations has designated 2025 as the year of quantum science and technology, highlighting the profound impact that technological advancements are poised to have on the world.

The increasing prevalence of artificial intelligence (AI) across a wide array of industries has spurred significant investment in the sector over the last two years as the world’s largest tech firms jump in. As AI continues to evolve, many investors are wondering if 2025 will be a pivotal year when these investments begin to show significant returns.

How will AI affect the stock market in 2025?

2024 was marked by concerns over the dominance and high valuations of the Magnificent 7, and heading into 2025, investors are keenly watching how these companies will influence the broader stock market.

Citigroup (NYSE:C) analysts have a generally positive outlook for 2025, noting that the Magnificent 7 aren’t trading at unprecedented valuations; rather, the other S&P 500 (INDEXSP:.INX) stocks are at a higher risk.

Essentially, the US stock market is priced for perfection, leaving it susceptible to a correction triggered by rising interest rates, disappointing earnings or a broader economic slowdown.

For its part, BNY asserts that the Magnificent 7 may actually be undervalued relative to their future growth potential. While acknowledging the record-high profit margins in the tech sector, the firm contends that valuations relative to the rest of the market are cheaper than during similar periods of technological advancement in history.

Further, the expectation of continued profit margin expansion and earnings growth fueled by ongoing AI innovation supports the notion of further upside potential for tech stocks.

AI juggernaut NVIDIA’s (NASDAQ:NVDA) sustained profitability underscores its dominant market position and ability to efficiently capitalize on the surging demand for its products.

Goldman Sachs (NYSE:GS) analysts believe the Magnificent 7 will continue to outperform the rest of the S&P 500 in 2025, but only by 7 percentage points, the lowest amount in seven years. The firm sees various elements, including macro factors like US growth and trade policy, favoring the ‘S&P 493.’

David Rosenberg, founder of independent research firm Rosenberg Research and Associates, expressed to the Globe and Mail on December 5 that he has shifted his perspective on the US stock market.

Rather than focusing on reasons for its overvaluation and bearish indicators, he aims to understand the underlying factors driving the market’s behavior over the past two years.

“The market is telling us that we are in a ‘Model Shift’ when it comes to future growth and profits,” he explained. “Traditional valuation methods, like price-to-earnings ratios, are backward-looking and may not be suitable in this environment. Investors are focused on long-term potential, particularly in areas like AI, and are willing to pay a premium for it. The current surge in AI might resemble the dot-com bubble, but it could take years to confirm.’

He added that interest rate cuts from the US Federal Reserve would support higher valuations.

BNY also points to historical data showing that an environment of easing monetary policy tends to coincide with economic growth, with an average of 16.5 percent growth in the year following initial rate cuts since 1984. It suggests that S&P 500 earnings growth will be between 10 to 15 percent in 2025, with the index reaching around 6,600 in 2025. Although this represents slower growth compared to 2024, it still indicates continued expansion.

While Rosenberg is mindful of near-term risks, such as weakness in the US labor market and the likelihood of profit-taking and early rebalancing, he emphasized the importance of keeping an open mind in 2025.

In his view, it’s key for investors to learn from the mistakes of the past year, such as overreacting to short-term volatility and underestimating the potential of transformative technologies.

Profitability in focus as AI improvement rate slows

While Big Tech pours billions into AI development, the question of profitability in 2025 hangs in the balance.

Google (NASDAQ:GOOGL) is prioritizing long-term AI dominance over short-term gains. The company’s aggressive AI spending is expected to continue in 2025, potentially impacting immediate revenue growth.

Similarly, Meta (NASDAQ:META) is heavily investing in AI, with a projected US$1 billion increase in capital expenditures for 2024. CFO Susan Li acknowledged in the company’s earnings call for Q3 of this year that both depreciation and operating expenses will grow next year as Meta expands its AI infrastructure and product line.

Overall, the AI landscape in 2025 hinges significantly on whether Big Tech can deliver on its ambitious promises, and recent commentary suggests that the rate of AI improvement may be slowing down. Several AI investors, founders and CEOs told TechCrunch in November that the focus may shift to efficiency and specialized AI solutions.

Test-time compute, which gives AI models more time to “think” before answering a question, emerged as part of the new era of scaling laws toward the end of 2024. Scaling laws are described by TechCrunch as the methods and expectations that labs have used to increase the capabilities of their models.

This development has fueled a growing belief — held by experts like Anthropic CEO Dario Amodei and OpenAI CEO Sam Altman — that artificial general intelligence (AGI) may be closer than previously anticipated.

Beyond the evolution of scaling laws, Konstantine Buhler of Sequoia Capital told Bloomberg News that 2025 is poised to be a breakout year for AI agents. These sophisticated programs, capable of independently performing tasks and making decisions, have the potential to revolutionize how we interact with technology and automate complex processes.

While the transformative potential of AI spans countless industries, the scale and timing of substantial returns remain uncertain as we navigate this uncharted technological territory.

AI hardware and infrastructure developments to watch

Regardless of the exact timeline or nature of AGI’s arrival, one thing is certain: the race to develop and deploy advanced AI is driving an insatiable demand for powerful hardware, and key companies are stepping up.

“While the mega-cap cloud companies will capture a lot of future revenue opportunities for AI, they are still in spending mode right now. They’re spending heavily on semiconductors, data center infrastructure, and energy,” Nicholas Mersch, associate portfolio manager at Purpose Investments, wrote in a July market commentary note.

The buildout is ongoing, and Big Tech’s latest round of quarterly reports indicates no immediate slowdown in infrastructure spending. This dynamic positions key hardware players like Taiwan Semiconductor Manufacturing Company (NYSE:TSM), NVIDIA and Broadcom (NASDAQ:AVGO) for potentially stronger near-term returns.

For its part, Goldman Sachs predicts that investor focus will now shift from AI infrastructure to a wider “Phase 3” of AI application deployment and monetization. Companies of interest include software and services firms.

Lux Research highlights two primary models: the monopoly model and the ‘walled garden’ approach.

Companies like NVIDIA, Meta and Microsoft are pursuing a monopoly strategy, aiming to capture a large market share and maximize value extraction from a broad user base. Challenges include competition and pressure to keep prices low.

Companies can also adopt a ‘walled garden’ approach, similar to Apple’s (NASDAQ:AAPL) ecosystem, which prioritizes a smaller, more engaged user base. By providing premium features and exclusive content, companies can increase value generated per user. This model may face challenges in achieving the same level of scale as the monopoly model.

Investor takeaway

The outlook for the tech sector and the broader stock market in 2025 is cautiously optimistic.

AI is expected to continue playing a pivotal role, with the race for AI dominance fueling investments in infrastructure and innovation, and positioning key hardware and software players for potential gains.

However, the profitability of AI investments remains to be seen. Companies’ ability to adapt and capitalize on emerging opportunities will be crucial for sustained success in the dynamic landscape of 2025.

Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

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Economy

Stock Futures Lower after S&P 500 futures ticked down 0.18%

Economy

Stock futures are trading slightly lower Monday morning as investors gear up for the final month of 2024. S&P 500 futures slipped 0.18%, alongside declines in Dow Jones Industrial Average futures and Nasdaq 100 futures, which dropped 0.13% and 0.17%, respectively. The market’s focus is shifting to upcoming economic data, particularly reports on manufacturing and construction spending, ahead of this week’s key labor data releases.

November was a standout month for equities, with the S&P 500 futures rallying to reflect the index’s best monthly performance of the year. Both the S&P 500 and Dow Jones Industrial Average achieved all-time highs during Friday’s shortened trading session, with the Dow briefly surpassing 45,000. Small-cap stocks also saw robust gains, with the Russell 2000 index surging over 10% in November, buoyed by optimism around potential tax cuts.

As trading kicks off in December, investors are keeping a close eye on geopolitical developments in Europe, where France’s CAC 40 index dropped 0.77% amid political concerns, while Germany’s DAX and the U.K.’s FTSE 100 showed smaller declines.

S&P 500 futures will likely continue to act as a key barometer for market sentiment, particularly as traders assess the impact of upcoming economic data and global market developments.

S&P 500 Index Chart Analysis

This 15-minute chart of the S&P 500 Index shows a recent trend where the index attempted to break above the resistance level near 6,044.17 but retraced slightly to close at 6,032.39, reflecting a minor decline of 0.03% in the session. The candlestick pattern indicates some indecisiveness after a steady upward momentum seen earlier in the day.

On the RSI (Relative Strength Index) indicator, the value sits at 62.07, having declined from the overbought zone above 70 earlier. This suggests that the bullish momentum might be cooling off, and traders could anticipate a short-term consolidation or slight pullback. However, with RSI above 50, the overall trend remains positive, favoring buyers.

The index’s recent low of 5,944.36 marks a key support level, while the high at 6,044.17 could act as resistance. If the price sustains above the 6,020 level and RSI stabilizes without breaking below 50, the index could attempt another rally. Conversely, a drop below 6,020 could indicate a bearish shift.

In conclusion, the index displays potential for continued gains, but traders should watch RSI levels and price action near the support and resistance zones for confirmation.

The post Stock Futures Lower after S&P 500 futures ticked down 0.18% appeared first on FinanceBrokerage.

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Economy

S&P 500 climbed 0.3%, and Nasdaq-100 futures jumped 0.7%

Economy

Stock futures climbed on Wednesday, driven by strong performances from Salesforce and Marvell Technology, following upbeat quarterly earnings. Futures tied to the Dow Jones Industrial Average rose by 215 points (0.5%), while S&P 500 futures gained 0.3%, and Nasdaq-100 futures advanced by 0.7%.

Salesforce surged 12% after reporting fiscal third-quarter revenue that exceeded expectations, showcasing robust demand in the enterprise software sector. Meanwhile, chipmaker Marvell jumped 14% after surpassing earnings estimates and providing optimistic fourth-quarter guidance, indicating resilience in the semiconductor industry.

This movement follows a mixed session on Wall Street, where the S&P 500 and Nasdaq closed with small gains, while the Dow dipped slightly. The broader market has experienced a modest start to December, contrasting with November’s robust rally, but analysts anticipate a resurgence in momentum. LPL Financial’s George Smith pointed out that December historically sees strong market performance, particularly in the latter half of the month.

However, economic data introduced some caution. ADP’s report revealed that private payrolls grew by just 146,000 in November, missing estimates of 163,000. This signals potential softness in the labor market, with investors now awaiting Friday’s November jobs report for further clarity.

S&P 500 Index Chart Analysis

Based on the provided stock chart, which appears to be a 15-minute candlestick chart for the S&P 500 Index, here’s a brief analysis:

The chart shows a clear upward trend, with higher highs and higher lows indicating bullish momentum over the analyzed period. The index has steadily climbed from a low of approximately 5,855 to a recent high of 6,053.58, suggesting strong buying interest.

Key resistance is observed near 6,050-6,053 levels, as the price has struggled to break above this zone in the most recent sessions. If the index breaches this level with strong volume, it could lead to further upward movement. Conversely, failure to break out may lead to a pullback, with potential support around the 6,000 psychological level and 5,980, where consolidation occurred previously.

The candlestick patterns show relatively small wicks, indicating limited volatility, which could imply steady market confidence. However, the bullish rally could be overextended, warranting caution for traders, especially if any negative catalysts emerge.

In summary, the short-term trend is bullish, but traders should monitor resistance levels and volume for signs of a breakout or reversal. It’s also essential to watch broader market factors, as indices are often influenced by macroeconomic data and sentiment.

The post S&P 500 climbed 0.3%, and Nasdaq-100 futures jumped 0.7% appeared first on FinanceBrokerage.

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Investing

4 Platinum Uses for Investors to Know (Updated 2024)

Investing

Platinum may be rare, but it is the third most-traded precious metal in the world, behind gold and silver.

The world’s platinum demand varies widely across many sectors. Most notably, platinum metal is used in autocatalysts and jewelry, as well as for medical and industrial purposes. Those interested in investing in platinum would do well to be aware of the many platinum uses. After all, by knowing which industries require platinum, it’s possible to understand supply and demand dynamics, and to be aware of how the precious metal’s price may move in the future.

With that in mind, here’s a list of the four main platinum uses. Scroll on to learn more about platinum’s key applications.

In this article

    1. Autocatalysts

    One of the main platinum uses is in the construction of autocatalysts. An autocatalyst is a “cylinder of circular or elliptical cross section made from ceramic or metal formed into a fine honeycomb and coated with a solution of chemicals and platinum group metals.” An autocatalyst mounted inside a stainless steel canister is known as a catalytic converter.

    Catalytic converters are installed in a vehicle’s exhaust lines, between the engine and muffler, where they are used to moderate the dangerous qualities of exhaust. Specifically, the autocatalysts that vehicles contain convert over 90 percent of hydrocarbons and carbon monoxide into carbon dioxide, nitrogen and water vapor. They can also convert pollutants from diesel exhaust into carbon dioxide and water vapor, which is immensely helpful in reducing pollution.

    Autocatalysts have been used in the US and Japan since 1974, and are now so common that over 95 percent of new vehicles sold each year have one. As a result, they are a significant source of platinum demand that is not likely to disappear in the future. Indeed, as pollution rules become more stringent, car companies are looking at creating even more efficient autocatalysts.

    In 2024, platinum demand from the automotive sector was forecast to hit 3.17 million ounces, according to the World Platinum Investment Council (WPIC). It’s expected to climb to an eight-year high of 3.25 million ounces in 2025.

    2. Platinum jewelry

    Platinum has many qualities that make it ideal for use in jewelry, and that is the second largest source of platinum demand. The metal is strong, resists tarnish and can repeatedly be heated and cooled without hardening or oxidizing.

    When used to make jewelry, platinum is commonly alloyed with other platinum-group metals such as palladium, as well as copper and cobalt, so that it is easier to work with.

    The history of platinum jewelry is long. More than 2,000 years ago, Indigenous people in South America made rings and ornaments out of platinum. Egyptians used platinum for decoration as early as the 7th century BCE. Meanwhile, Europeans began to use the metal in jewelry in the 18th century. Currently, China is the largest market for platinum jewelry.

    In 2024, platinum demand for jewelry was expected to increase 5 percent year-over-year to 1.95 million ounces, and move up to 1.98 million ounces in 2025.

    3. Industrial applications

    Platinum’s industrial applications could fill a book all on their own. For instance, platinum catalysts are used to manufacture fertilizer ingredients, and the metal is a key component in silicones, hard disks, electronics, dental restoration, glass-manufacturing equipment and sensors in home safety devices.

    Another platinum use is in the construction of hard drives with extremely high storage densities. And, because it is reactive to oxygen, oxides of nitrogen and carbon monoxide, platinum can be used to detect changes in the amount of those materials in vehicles and buildings. For the same reason, platinum is also used in medical sensors, particularly medical instruments that measure blood gases, to detect oxygen.

    Industrial demand for platinum, including medical demand, was forecast to come in at 2.43 million ounces in 2024 before falling to 2.22 million in 2025.

    4. Medical applications

    Platinum is used in electronic medical devices like those mentioned above, as well as in catheters, stents and neuromodulation devices. It is ideal for these applications because of its durability, conductivity and biocompatibility. The metal is also inert within the body, making it safe for implantation.

    To meet other medical needs, platinum can be formed into rods, wires, ribbons, sheets and micromachined parts. Further, it helps fight cancer in the drugs cisplatin and carboplatin, which are widely used to treat testicular cancer, as well as ovarian, breast and lung cancer tumors.

    Medical demand for platinum has increased in recent years, and is forecast to rise to 303,000 ounces in 2024 and 314,000 ounces in 2025.

    FAQs about platinum

    How much is platinum worth?

    Throughout 2024, the price of platinum has traded between US$900 and US$1,100 per ounce. Although the industry is facing a growing supply deficit, it is also dealing with lagging demand.

    The shortfall in supply is related to a hangover from COVID-19 lockdowns, Russia’s war in Ukraine and ongoing electricity shortages and railway issues in the top platinum producing country South Africa. Russia typically ranks as the world’s second largest platinum-producing country. Meanwhile, economic pressures worldwide have weighed on demand for platinum from the automotive industry. However, the same economic challenges have led to less demand for electric vehicles, which don’t require platinum-laden catalytic converters.

    Which is more valuable, gold or platinum? Why?

    Platinum is 30 times rarer than gold, much harder to mine and in high demand due to its important industrial uses, but the gold price is more than double the price of platinum in 2024. Precious metal gold has long been valued as a form of currency and a store of wealth, yet platinum jewelry often has a higher price point than gold jewelry.

    Platinum in general has historically traded on par or at a premium to gold, but since 2015 the two metals have diverged in price, with the gold taking the high road. This split has been attributed to gold’s safe-haven status and platinum’s reliance on the industrial and jewelry markets, which don’t fare well in times of economic uncertainty. This has led to increasing demand for platinum jewelry as a cheaper alternative to gold jewelry.

    What’s the best investment, gold or platinum?

    Both gold and platinum have wealth-generating potential, but it’s important to determine which precious metals fit your investment strategy; consider looking at supply, demand and prices for each option before making a decision.

    To learn more, check out: What is the Best Precious Metal to Invest In?

    Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

    This post appeared first on investingnews.com

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    Investing

    Silver Price 2024 Year-End Review

    Investing

    The silver price put on a strong performance in 2024, hitting highs not seen in over a decade.

    Despite some volatility, factors like increasing industrial demand, safe-haven buying from investors and weakening mining supply all came together during the year to support gains in the price.

    All told, silver is up nearly 35 percent since the start of 2024, outperforming gold’s 32 percent gain.

    Silver price in Q4

    Silver began Q4 on a strong note, reaching US$31.37 per ounce on October 1 and climbing to US$32.18 on October 4; it then slipped to US$30.49 on October 9. However, the white metal’s price didn’t remain low for long. It surged to its year-to-date high of US$34.72 on October 22, also reaching its highest level in 12 years.

    The most significant tailwinds for silver came from geopolitical tensions, with what appeared to be a greater likelihood of the Israel-Palestine conflict spilling over into a broader regional war in October. Israel’s attacks on Lebanon, Syria and Iran saw more investors seek the haven of precious metals, benefiting silver.

    As November began, the price of silver was again in retreat, trading at US$30.24 by November 15.

    Silver faced headwinds following the US presidential election on November 5, losing nearly 5 percent in a single day as some investors fled to interest-bearing assets. However, the metal’s losses were somewhat softened after the US Federal Reserve made a 25 basis point cut to its benchmark rate on November 7.

    Silver price, Q4 2024.

    Chart via Trading Economics.

    As the month worse on, silver saw volatility, spiking to US$31.34 on November 22. The rise came as safe-haven investors flocked to the metal following an escalation in the war between Russia and Ukraine. The US, UK and France said they would allow the use of long-range missiles by Ukraine to attack military targets inside Russia.

    Previously, Ukraine had only been allowed to use the missiles to strike targets along the border.

    The response from Russia was a policy change that would permit the use of nuclear weapons against countries supported by nuclear powers. Following the move, Russia launched a test of an intermediate-range ballistic missile capable of carrying a nuclear payload on a target within Ukraine.

    Silver fell to a quarterly low of US$30.11 on November 27, but since then the precious metal has regained some ground. As of December 11, it was trading at US$31.88.

    The next Fed meeting is set to run from December 17 to 18. Most analysts expect the central bank to make one last 25 basis point cut before pausing in 2025.

    How did silver perform for the rest of the year?

    Silver price in Q1

    Silver started the year on a low note as its lackluster performance from 2023 carried over.

    However, rate cut expectations added momentum to silver at the end of February and the beginning of March, which pushed the price up from the US$22 range to above US$25.

    Krauth also mentioned declining aboveground silver inventories.

    “I think there may be 12 to 24 months left before they run out,” he said.

    Silver price in Q2

    The big news from the second quarter was silver breaking through the US$30 barrier.

    The price continued to be fueled by rate cut speculation, but also saw support from industrial segments as demand from India soared. The country imported more silver during the first four months of 2024 than all of 2023.

    Industrial segments, particularly photovoltaics production, have been a driver of Indian demand as the country works to build up its domestic solar supply chain through its approved list of models and manufacturers.

    Silver price in Q3

    Silver didn’t see much upward momentum through most of the third quarter.

    Instead, it saw a significant retreat toward US$26. Still, by the end of the quarter, a Fed rate cut had provided a substantial tailwind for silver, sending it above the US$32 mark by the end of September.

    The quarter also saw First Majestic Silver (TSX:AG,NYSE:AG) announce on September 5 that it would purchase all of the issued and outstanding shares of Gatos Silver (TSX:GATO,NYSE:GATO) in a US$970 million transaction.

    The deal will give First Majestic a 70 percent stake in the Cerro Los Gatos mine in Northern Mexico. The combined entity’s anticipated annual production is 30 million to 32 million silver equivalent ounces.

    This was followed on October 4 by Coeur Mining’s (NYSE:CDE) agreement to acquire SilverCrest Metals (TSX:SIL,NYSE:SILV) for US$1.7 billion. The deal will create one of the world’s largest silver producers, with annual output of 21 million ounces of the white metal projected by 2025.

    The deal will give Coeur 100 percent ownership of the recently opened Las Chispas mine in Sonora, Mexico, which is projected to sell 9.8 million to 10.2 million silver equivalent ounces this year.

    Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.

    This post appeared first on investingnews.com

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    Economy

    Stock Futures Lower after S&P 500 futures ticked down 0.18%

    Economy

    Stock futures are trading slightly lower Monday morning as investors gear up for the final month of 2024. S&P 500 futures slipped 0.18%, alongside declines in Dow Jones Industrial Average futures and Nasdaq 100 futures, which dropped 0.13% and 0.17%, respectively. The market’s focus is shifting to upcoming economic data, particularly reports on manufacturing and construction spending, ahead of this week’s key labor data releases.

    November was a standout month for equities, with the S&P 500 futures rallying to reflect the index’s best monthly performance of the year. Both the S&P 500 and Dow Jones Industrial Average achieved all-time highs during Friday’s shortened trading session, with the Dow briefly surpassing 45,000. Small-cap stocks also saw robust gains, with the Russell 2000 index surging over 10% in November, buoyed by optimism around potential tax cuts.

    As trading kicks off in December, investors are keeping a close eye on geopolitical developments in Europe, where France’s CAC 40 index dropped 0.77% amid political concerns, while Germany’s DAX and the U.K.’s FTSE 100 showed smaller declines.

    S&P 500 futures will likely continue to act as a key barometer for market sentiment, particularly as traders assess the impact of upcoming economic data and global market developments.

    S&P 500 Index Chart Analysis

    This 15-minute chart of the S&P 500 Index shows a recent trend where the index attempted to break above the resistance level near 6,044.17 but retraced slightly to close at 6,032.39, reflecting a minor decline of 0.03% in the session. The candlestick pattern indicates some indecisiveness after a steady upward momentum seen earlier in the day.

    On the RSI (Relative Strength Index) indicator, the value sits at 62.07, having declined from the overbought zone above 70 earlier. This suggests that the bullish momentum might be cooling off, and traders could anticipate a short-term consolidation or slight pullback. However, with RSI above 50, the overall trend remains positive, favoring buyers.

    The index’s recent low of 5,944.36 marks a key support level, while the high at 6,044.17 could act as resistance. If the price sustains above the 6,020 level and RSI stabilizes without breaking below 50, the index could attempt another rally. Conversely, a drop below 6,020 could indicate a bearish shift.

    In conclusion, the index displays potential for continued gains, but traders should watch RSI levels and price action near the support and resistance zones for confirmation.

    The post Stock Futures Lower after S&P 500 futures ticked down 0.18% appeared first on FinanceBrokerage.

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    Economy

    S&P 500 climbed 0.3%, and Nasdaq-100 futures jumped 0.7%

    Economy

    Stock futures climbed on Wednesday, driven by strong performances from Salesforce and Marvell Technology, following upbeat quarterly earnings. Futures tied to the Dow Jones Industrial Average rose by 215 points (0.5%), while S&P 500 futures gained 0.3%, and Nasdaq-100 futures advanced by 0.7%.

    Salesforce surged 12% after reporting fiscal third-quarter revenue that exceeded expectations, showcasing robust demand in the enterprise software sector. Meanwhile, chipmaker Marvell jumped 14% after surpassing earnings estimates and providing optimistic fourth-quarter guidance, indicating resilience in the semiconductor industry.

    This movement follows a mixed session on Wall Street, where the S&P 500 and Nasdaq closed with small gains, while the Dow dipped slightly. The broader market has experienced a modest start to December, contrasting with November’s robust rally, but analysts anticipate a resurgence in momentum. LPL Financial’s George Smith pointed out that December historically sees strong market performance, particularly in the latter half of the month.

    However, economic data introduced some caution. ADP’s report revealed that private payrolls grew by just 146,000 in November, missing estimates of 163,000. This signals potential softness in the labor market, with investors now awaiting Friday’s November jobs report for further clarity.

    S&P 500 Index Chart Analysis

    Based on the provided stock chart, which appears to be a 15-minute candlestick chart for the S&P 500 Index, here’s a brief analysis:

    The chart shows a clear upward trend, with higher highs and higher lows indicating bullish momentum over the analyzed period. The index has steadily climbed from a low of approximately 5,855 to a recent high of 6,053.58, suggesting strong buying interest.

    Key resistance is observed near 6,050-6,053 levels, as the price has struggled to break above this zone in the most recent sessions. If the index breaches this level with strong volume, it could lead to further upward movement. Conversely, failure to break out may lead to a pullback, with potential support around the 6,000 psychological level and 5,980, where consolidation occurred previously.

    The candlestick patterns show relatively small wicks, indicating limited volatility, which could imply steady market confidence. However, the bullish rally could be overextended, warranting caution for traders, especially if any negative catalysts emerge.

    In summary, the short-term trend is bullish, but traders should monitor resistance levels and volume for signs of a breakout or reversal. It’s also essential to watch broader market factors, as indices are often influenced by macroeconomic data and sentiment.

    The post S&P 500 climbed 0.3%, and Nasdaq-100 futures jumped 0.7% appeared first on FinanceBrokerage.

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    Stocks

    DP Trading Room: Is Broadcom (AVGO) the New NVIDA (NVDA)?

    Stocks

    Today Erin looks at the Broadcom (AVGO) chart and compares it to the NVIDIA (NVDA) chart. She shows us the differences between the two and tells you whether she believes AVGO will be the new NVDA, meaning it will perform as NVDA used to perform with a concerted move up nearly everyday.

    Carl analyzes the market and gives you all you need to know going into this trading week. He discusses his thoughts on where the market may be headed in January. Can the rally continue?

    After the market overview, Carl covers the Magnificent Seven in the short term and the intermediate term by looking at both the daily and weekly charts for each.

    The pair then answer questions posed by audience on OBV construction and a discussion of how we use the Bias Table for short-term analysis. Currently the table is flipping bearish.

    Erin covers sector rotation and gives us two sectors to watch moving into this week. Two sectors are in decline but they have both reached very interesting levels of support that could precede an upside reversal.

    Finally Erin covers viewers symbol requests.

    If you’d like to join us in the free DP Trading Room on Mondays at Noon ET, sign up at this link: https://zoom.us/webinar/register/WN_D6iAp-C1S6SebVpQIYcC6g#/registration

    Don’t forget you can get a free two week trial of any of our subscriptions by using coupon code: DPTRIAL2 at checkout!

    01:06 DP Signal Tables

    04:22 Semiconductor Chart

    06:39 Market Overview

    17:27 Magnificent Seven

    23:46 Questions

    30:52 Broadcom v. NVIDIA

    38:16 Sector Rotation

    42:04 Symbol Requests

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