US equity indexes remained stable as government bond yields increased and the dollar strengthened ahead of an anticipated rise in month-over-month headline inflation. The S&P 500 and the Dow Jones Industrial Average showed minimal changes at 6,057.5 and 44,421.9, respectively, after midday on Tuesday.
Meanwhile, the Nasdaq Composite gained 0.2% to reach 19,780.1. Notably, both the S&P 500 and the Nasdaq have experienced consecutive increases over the past three weeks, achieving fresh record highs. Communication services and consumer discretionary sectors emerged as the strongest intraday gainers, while real estate, utilities, and technology sectors faced declines. The month-over-month headline inflation rate registered a rise of 0.3% in November following 0.2% in October, based on a survey compiled by Bloomberg ahead of the data release on Wednesday.
Additionally, the month-over-month core rate and both year-over-year headline and core rates reflecting price pressures remained stable last month, as indicated by the survey. The US Dollar index grew by 0.4% to 106.57 intraday, gaining strength against a selection of the world's key currencies. "The dollar edged higher ahead of a crucial inflation report this week that could influence the Federal Reserve's decisions at its monetary policy meeting" on December 18, a statement from D.A.
Davidson noted. Utilizing the CME Group's FedWatch Tool, the forecasted probability for interest rates in December next year is projected to be 3.75% to 4%, as opposed to the current range of 4.5% to 4.75%. This shift indicates that the market does not account for significant easing following the highly awaited 25 basis-point rate cut anticipated this month. Most US Treasury yields climbed intraday, with the US 10-year rising by 3.59 basis points to 4.24% and the two-year increasing by 4.3 basis points to 4.17%. In commodity news, gold prices surged 1.2% to $2,716.32 per ounce, while silver experienced a 0.2% increase to $32.67 per ounce. Examining economic indicators, the National Federation of Independent Business's monthly Small Business Optimism Index increased to 101.7 in November from 93.7 in October.
This figure is not only above the 90.6 recorded a year ago but also marks the highest level since June 2021. The Redbook US same-store sales reported a 4.2% rise compared to the previous year in the week ending December 7, which was notably slower than the 7.4% year-over-year increase observed in the prior week. In company-specific news, Oracle ($ORCL) shares fell by 8.1% intraday, making it the worst performer on the S&P 500 after fiscal Q2 non-GAAP earnings and revenue underperformed analyst expectations released late Monday. Meanwhile, MongoDB ($MDB) saw a significant 14% drop intraday, emerging as the steepest decliner on the Nasdaq, despite reporting better-than-expected Q3 results and improving its full-year outlook. Boeing ($BA) resumed production of its 737 MAX aircraft last week, nearly a month after overcoming an almost eight-week strike, according to reports from Reuters, which cited three unnamed sources familiar with the developments.
Consequently, shares of the aircraft manufacturer jumped by 4.1% intraday, positioning it as the top performer on the Dow. West Texas Intermediate crude oil futures rose by 0.7% to $68.83 per barrel..