Market Weakness Persists on Liquidity Concerns and Rising Rates

Of the S&P 500, 470 stocks were down, 31 were up, and two were unchanged—an overwhelmingly bearish day. On the New York Stock Exchange, there were 823 more decliners than advancers, which is better than Friday’s 1,700+ decliners but still negative. The McClellan Oscillator for the NYSE is at -43, down from -5 after rising briefly from -106. This indicates that breadth remains weak. The Summation Index has declined to -351, reinforcing the poor breadth metrics.(RSP) has fallen nearly 7.

5% from its November 27 peak, compared to just a 3% decline in the leading S&P 500.(HGX) is down 18% from its peak and is trading near July levels, only a few percentage points above where it started in 2024.(XLB) has dropped 15% from its highs and is back to its start-of-year level. Without the strong performance of the “Magnificent Seven” stocks, overall S&P 500 losses would likely be much steeper. This market weakness seems tied to liquidity issues and rising rates, trends that have persisted since mid-October. Key sectors like XLB and HGX peaked around that time, forming double tops before declining. Yesterday’s S&P 500 movement looked like a rebalancing event. The last two trading sessions saw significant selling pressure in futures between 7 and 8 AM, ahead of the market open, on decent volume. A similar decline occurred around 7 AM yesterday, but on lighter volume. If this pattern repeats today, it could confirm that these moves are related to rebalancing or similar flows.dropped 9–10 basis points yesterday, though the reason is unclear. With yields rising 70 basis points this year (from 3.83% on January 2 to 4.53%), yesterday’s drop could also reflect portfolio rebalancing as the year ends. It’s also worth noting that most global markets are closed on December 31, while U.S. markets remain open all day, making them a key liquidity source heading into the year’s final trading da

Singapore Singapore Latest News, Singapore Singapore Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Market Liquidity May Not Be Ample as Some BelieveMarket Overview Analysis by Michael Kramer covering: US Dollar Japanese Yen, S&P 500, US Dollar Index Futures, CBOE Volatility Index. Read Michael Kramer's latest article on Investing.com
Source: Investingcom - 🏆 450. / 53 Read more »

Liquidity Strains May Be Giving a False Sense of Security to the MarketMarket Overview Analysis by Michael Kramer covering: Euro US Dollar. Read Michael Kramer's latest article on Investing.com
Source: Investingcom - 🏆 450. / 53 Read more »

Global cenbank liquidity - from market headwind to tailwind?: McGeeverGlobal cenbank liquidity - from market headwind to tailwind?: McGeever
Source: Investingcom - 🏆 450. / 53 Read more »

BLS Employment Growth Revision Sparks Concerns about Job Market WeaknessThe Bureau of Labor Statistics (BLS) revised 2024 employment growth downwards, raising concerns about the strength of the job market. The preliminary revision, released in August, resulted in a decrease of 818,000 jobs. Further downward revisions are anticipated in January with the release of the final benchmark revision.
Source: Investingcom - 🏆 450. / 53 Read more »

Petra Diamonds cuts forecasts, jobs amid market weaknessNo 1 source of global mining news and opinion
Source: mining - 🏆 449. / 53 Read more »