What the equity market needs next year is a dovish US central bank, Amanda Agati, PNC Asset Management Group’s chief investment officer said on Bloomberg Television on Tuesday.
“I joke that the equity market is like a kid in a candy store, braving a sugar high for more policy accommodation, a more dovish Fed — but it doesn’t know what’s good for it,” she said. “The bond market is the adult in the room taking away the last lollipop.”
The biggest weights on the US market remained technology companies, especially those focused on advancements for artificial intelligence. Nvidia edged down 0.2 per cent and Apple fell 0.5 per cent. Both companies have outsized values that have a greater overall impact on the market’s broader direction.
On the winning side, Facebook parent Meta Platforms rose 1.9 per cent. The company is buying artificial intelligence startup Manus as it continues an aggressive push to amp up AI offerings across its platforms. The California tech giant declined to disclose financial details of the acquisition. But The Wall Street Journal reported that Meta closed the deal at more than $US2 billion ($3 billion).
Markets were mixed in Asia and higher in Europe.
With just two trading days left before the year ends, most big investors have closed out their positions and volume has been thin. Wall Street will also be closed on Thursday for New Year’s day.
The more notable action was again in the commodities markets. Gold, silver and copper all resumed their ascent after steep declines a day earlier.
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The price of gold rose 1.1 per cent and silver prices jumped 9.5 per cent after slumping on Monday when the Chicago Mercantile Exchange, one of the largest trading floors for commodities, asked traders to put up more cash to make bets on precious metals. Prices for both metals have surged in 2025 on a mix of economic worries and supply deficits.
Copper rose 3.7 per cent and is up more 40 per cent for the year on strong demand. The base metal is critical to global energy infrastructure, and demand is expected to keep growing as the development of artificial intelligence technology puts more of a strain on data centres and the energy grid.
Crude oil prices were relatively steady. The price of US crude oil was mostly unchanged. The price of Brent crude, the international standard, fell 0.1 per cent.
Treasury yields mostly rose in the bond market. The yield on the 10-year Treasury rose to 4.12 per cent from 4.11 per cent late on Monday. The yield on the two-year Treasury, which moves more closely with expectations for what the Federal Reserve will do, held steady at 3.45 per cent.
Overall, bond yields have fallen significantly through the year, partly because of the market’s expectations for a shift in interest rate policy at the Fed. The central bank cut interest rates three times late in 2025, most recently at this month’s meeting.
AP, with AAP and Bloomberg
