As we conclude the last full business week of 2023, the markets have witnessed significant shifts. From the abrupt halt of the stock market rally to the impactful news of Apple Watch sales being blocked in the U.S., these events have notably influenced market dynamics. For a detailed analysis and insights into these pivotal developments, dive into our comprehensive review below 👇
A record-setting stock rally took a breather after a string of gains
U.S. stocks declined, interrupting a record-setting rally after consistent gains in the past week. The Dow Jones fell over 1.2%, while the Nasdaq and S&P 500 both dropped about 1.5%, marking the S&P’s worst performance since October and ending a nine-day winning streak for both the Nasdaq and Dow.
This pullback occurred despite a strong year-end rally, which had brought the Dow to five record closes in a row and the S&P 500 close to its all-time high, with investors initially overlooking hawkish comments from Federal Reserve officials.
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Apple shares ($AAPL) fall after reports it will halt US sales of latest watches
Apple Inc.’s stock fell following an announcement that sales of the latest Apple Watch models in the U.S. will cease due to a patent infringement ruling by the U.S. International Trade Commission (ITC). This decision, influenced by a dispute with Masimo Corp over blood oxygen sensor technology, affects the Apple Watch Series 9 and Apple Watch Ultra 2.
Despite this setback, Apple’s share price, which was down 1% to $195.64 around 1:00 p.m. ET Monday, has increased by about 56% over the year.
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Gold ends the year on a positive note, above $2035
Gold concluded the year with a strong performance, maintaining its position above $2035. The precious metal saw weekly gains, supported by a softer risk sentiment and growing speculation that the Federal Reserve might initiate interest rate cuts by March 2024.
The performance of gold ($XAUUSD) was further bolstered as the US Dollar failed to build on its overnight gains, marginally falling amidst these rate cut expectations. Gold’s intraday high reached $2,043.57, reflecting its resilience in a fluctuating market environment.
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EUR/USD is likely to trade in the 1.02-1.12 range for 12–24 months
The $EURUSD pair is likely to face a downward pressure, potentially returning to the 1.05 level within the next three months. This expectation stems from the anticipated weakness in the German economy, which is expected to impact the Euro’s prospects in the upcoming business cycle and beyond.
Over a longer term, in the 12-24 month horizon, the $EURUSD pair is projected to trade within a range of 1.02 to 1.12. This forecast is notably lower than most model estimates of fair value, indicating a less optimistic outlook for the Euro to rise above the 1.20 level again.
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This concludes our weekly recap. Have a great weekend and see you next week! 👋
