Investing.com: Analysis of Market Trends – ECB Decision, Adobe, and Bitcoin Driving Movement
Investing.com — Wall Street is trading slightly lower Thursday, with sentiment weighed down by disappointing sales guidance from software giant Adobe. Bitcoin has climbed above $100,000 again, while the European Central Bank is expected to ease monetary policy following a 50 basis points cut by the Swiss National Bank.
1. ECB to cut, but by how much?
Central banks are in focus as the year comes to a close. The European Central Bank’s latest policy meeting is set to conclude later today, ahead of the Federal Reserve next week. There is speculation about the extent of the rate cut by the ECB, with expectations for a 25 basis points reduction.
The ECB has been gradually easing monetary policy to support the economy, which is facing risks of recession and political instability. Markets are anticipating further easing measures with reductions expected at every meeting until June and at least one additional cut in the second half of 2025.
On the other hand, the Swiss National Bank has already cut rates by 50 basis points, aiming to address a strong Swiss franc and low inflation. This move marked the first loosening of monetary policy by a major economy this year.
2. Futures slightly lower; Adobe slumps
US stock futures slipped Thursday after the Nasdaq reached above 20,000 for the first time. The market awaits the November consumer price index report and looks ahead to the Federal Reserve’s policy meeting next week.
In the corporate earnings arena, Adobe disappointed with its sales guidance. Other companies like Broadcom, RH, and CostCo are also set to report after the closing bell.
3. Adobe’s sales outlook disappoints
Adobe stock dropped in premarket trading due to a disappointing annual sales outlook. The company’s investments in artificial intelligence have not yet yielded significant returns as expected, leading to lower revenue projections for 2025.
4. Bitcoin back above $100,000 despite Microsoft
Bitcoin rebounded and crossed $100,000 amid expectations of a December interest rate cut by the Federal Reserve. However, the digital currency faced a setback after Microsoft shareholders rejected a proposal to consider adding Bitcoin to the company’s balance sheet.
5. Oil steadies amid myriad of different factors
Crude oil prices remained steady as traders assessed various factors affecting the market, including potential US oil sanctions, stimulus measures in China, and OPEC’s pessimistic outlook on oil demand. The US crude futures and Brent crude futures saw minor gains following recent developments in the oil market.
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