US equity markets displayed minimal movement on Wednesday, maintaining proximity to their all-time peaks as investors participated in a subdued, holiday-shortened trading day ahead of Christmas. The trading atmosphere was calm, with volumes remaining light.
Major Indices Show Little Change
In early trade, the benchmark S&P 500 index was essentially flat, following its record-setting close in the previous session. The Dow Jones Industrial Average saw a modest gain of 51 points, or 0.1%. Conversely, the technology-heavy Nasdaq composite index experienced a slight dip of 0.1%. US financial markets were scheduled for an early closure at 1:00 PM Eastern Time on Christmas Eve and remain shut on Thursday for the holiday, resuming normal operations on Friday.
Corporate Action and Economic Data in Focus
Market activity was punctuated by significant corporate news. Shares of Dynavax Technologies skyrocketed approximately 38% after global pharmaceutical giant Sanofi announced a definitive agreement to acquire the California-based vaccine maker for $2.2 billion. Sanofi aims to integrate Dynavax's hepatitis B vaccines and an experimental shingles shot into its product lineup. Sanofi's own stock showed little change in premarket activity.
On the economic front, participants awaited the weekly jobless claims data from the US Labor Department, a key barometer for labour market strength. Recent indicators have suggested a cooling in hiring momentum, even though unemployment claims persist at historically low levels. Broader market expectations are factoring in the US Federal Reserve holding interest rates steady in its January meeting, against a backdrop of lingering inflation and signs of softening consumer confidence and retail sales.
Global Markets and Commodities Roundup
Overseas, trading sessions were mixed and often abbreviated for the festive season. In Europe, Britain's FTSE 100 declined 0.2% while France's CAC 40 edged up 0.1%. Markets in Germany were closed, and several others, including London, Paris, Hong Kong, and Australia, shut early.
Asian markets closed with divergent performances:
- Japan's Nikkei 225: down 0.1%
- South Korea's Kospi: fell 0.2%
- Hong Kong's Hang Seng: gained 0.2%
- China's Shanghai Composite: rose 0.5%
- Australia's S&P/ASX 200: declined nearly 0.4%
- India's Sensex: down 0.1%
In the commodities space, gold and silver extended their rally, building on record highs achieved earlier in the week, bolstered by geopolitical tensions. Spot gold climbed to around $4,518 an ounce. Oil prices saw marginal increases, with US benchmark crude adding 13 cents to $58.51 a barrel, as traders assessed potential supply disruptions. In currency markets, the US dollar weakened against the Japanese yen.
