Market Overview

The Fed’s preferred inflation metric, PCE, supported cautious rate cuts, pausing the recent rally in U.S. equities. Ahead of Thanksgiving, the Dow snapped a five-day winning streak, with both the $Dow Jones Industrial Average (.DJI.US)$ and $S&P 500 Index (.SPX.US)$ retreating from record highs. Small caps struggled to rebound, while tech stocks led declines— $NVIDIA (NVDA.US)$ dropped over 3% intraday. $Dell Technologies (DELL.US)$ and $HP Inc (HPQ.US)$ saw steep losses following earnings.

The 10-year Treasury yield fell to a three-week low before rebounding after PCE data. The dollar index hit a two-week low.

Chinese ADRs outperformed, surging 2.8%. Offshore yuan rose nearly 280 points, reclaiming 7.25.

The yen spiked 1.7% intraday to a five-week high.

Bitcoin rebounded sharply, gaining over $6,000 to surpass $97K. Oil struggled to rebound and ended flat. Gold erased most of its gains post-PCE, pulling back from a one-week low.