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December 20, 2024

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Stock Market Sell Off: Is the Bull Market Over?

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Uncertainty in the stock market makes it difficult to make investment decisions. When investors sell off stocks, everyone follows without giving it much thought and you’re left trying to figure out which path you should take. We saw this price action in the stock market on Wednesday after the Federal Open Market Committee cut interest rates by a quarter percentage point. Investors started to sell their holdings, which intensified toward the last few minutes of the trading day. 

The rate cut didn’t come as a surprise. The market had already priced it in. Fed Chairman Jerome Powell’s comments about slowing down rate cuts for the next two years led to the massive selloff. Inflationary concerns were one reason which may have heightened investor fear. The S&P 500 ($SPX) fell by 2.95%, and the Nasdaq Composite ($COMPQ) dropped by 3.56%. The S&P 600 Small Cap Index ($SML) got hit hard, falling over 4%.

It wasn’t just equities that sold off. Gold prices fell. Silver prices fell. Bond prices fell. Even cryptocurrencies felt the pain. 

So, how damaging was the selloff? Let’s dive into the charts of the broader stock market indexes. 

Equities Hammered Hard

Whenever there’s such a significant fall in equities, it’s natural to think about buying the dip. But before you jump into anything, it’s best to see if the uptrend is still in play. 

From its August low, the S&P 500 has been in an upward trend with a few pullbacks, the deepest one being in early September when it almost reached its 100-day simple moving average or SMA (see chart below). On Wednesday, the index closed below its 50-day SMA toward the low of the day. The daily chart below shows market breadth is declining. 

FIGURE 1. DAILY CHART OF THE S&P 500 INDEX WITH BREADTH INDICATORS. The index is close to hitting its late November lows, a key support level. If it breaks below that level and market breadth indicators continue to weaken, it could be a bearish signal. Chart source: StockCharts.com. For educational purposes.

The NYSE Advance-Decline Line (!ADLINENYC), the percent of S&P 500 stocks trading above their 200-day moving average ($SPXA200R), and the S&P 500 Bullish Percent Index ($BPSPX) are all trending lower. That the $BPSPX is below 50 shows that bearish pressure is dominant, which is concerning. 

The weekly chart is more optimistic in that the S&P 500 is still trending higher and above its 21-week exponential moving average (EMA). All the moving averages on the chart are trending higher.

FIGURE 2. WEEKLY CHART OF S&P 500 INDEX. All moving averages overlaid on the chart are trending higher. The S&P 500 is trading above its 21-day EMA. A break below the EMA would be the first signal of a reversal of a bull market. Chart source: StockCharts.com. For educational purposes.

The takeaway: Watch the November lows in the daily chart (blue dashed line). A close below this level would mean a break in the “higher highs, higher lows” trend. If the $BPSPX continues to decline and the S&P 500 falls below its November low and 21-week EMA, consider offloading partial positions. 

The Nasdaq Composite has a similar pattern in its chart, although it’s still above its 50-day SMA (see chart below). However, what is concerning about the daily chart of the Nasdaq is that it closed at its November high. A break below this level could break the series of higher highs and higher lows depending on how it unfolds. So watch this level carefully.

FIGURE 3. DAILY CHART OF NASDAQ COMPOSITE WITH MARKET BREADTH INDICATORS. The Nasdaq has reached its November high. Market breadth indicators are weakening. Keep an eye on this chart. Chart source: StockCharts.com. For educational purposes.

The NASDAQ Advance-Decline Line (!ADLINENAS), the percent of Nasdaq stocks trading above their 200-day moving average is at 54% and trending lower, and the Nasdaq Bullish Percent Index ($BPCOMPQ) are all trending lower with the $BPCOMPQ at 50. If you pull up the weekly chart by changing the Period dropdown menu to weekly and using a five-year range, the trend is still bullish, similar to the weekly chart of the S&P 500.

Fear Gauge Is Running Hot

The rise in fear can be seen in the action in the Cboe Volatility Index ($VIX) which closed at 27.62, a 74.04% increase. The chart of the S&P 500 vs. the VIX below shows how big of a move it experienced on Wednesday. 

FIGURE 4. S&P 500 VS. THE CBOE VOLATILITY INDEX ($VIX). Spikes in the VIX are accompanied by a pullback in the S&P 500. Chart source: StockCharts.com. For educational purposes. A spike of such a magnitude occurred in early August, which is when the S&P 500 pulled back and resumed a very optimistic uptrend. 

Despite the spike in the VIX, investors weren’t flocking to “risk-off” investments. Gold and silver prices fell as did cryptocurrency prices. Treasury yields rose with the 10-year yield at 4.494% and the US dollar surged against other major currencies, especially the euro. 

The Bottom Line

Now that the last FOMC meeting for the year is behind us, there’s not much remaining in terms of economic data except the November Personal Consumption Expenditure (PCE) on Friday. There’s also the Santa Claus Rally to look forward to. So if Wednesday’s chaotic price action is an opportunity to buy the dip, i.e., if the indexes reverse without falling past critical support levels, you could make some end-of-year trades that could turn profitable as we head into the new year.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

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Three RRGs to Keep You on Track

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The Yield Curve

The RRG above shows the rotations of the various maturities on the US-Yield Curve.

What we see at the moment is that the shorter maturities like BIL, SHY, and IEI are in relative uptrends against GOVT which means that the accompanying yields are being pushed lower.

The longer maturities, all inside the lagging quadrant, are in opposite moves and their yields are being pushed higher.

The result of such a rotation is a so-called “steepening” of the yield curve.

This chart shows the 10-2 yield curve. 10-year yield minus 2-year yield. In a normal situation, longer-dated maturities carry a higher yield than shorter-dated maturities. For almost 2.5 years this was not the case in the US. The negative values in the chart above indicate an “inverted” yield curve. This has happened a few times in the past but it is considered non-normal.

The recent rise of the 10-2 difference above 0 indicates a return to normal for the US yield curve.

Another way of showing the move of the yield curve is by using the Dynamic Yield Curve tool on the site. Here are three snapshots of the YC move since mid-2022.

This visualization shows the love of the entire curve. It not only shows the steepening vs flattening move but also the rise of the total curve of around 2% from just above 2% to over 4.5% currently.

The Relative Rotation Graph showing the rotations of the various maturities will help investors to keep track of the steepening/flattening move.

The US Dollar

The RRG for the G10 currencies, using the USD as the benchmark, shows a picture that could not be more clear.

The USD is the strongest currency at the moment.

All currencies in this group are, moving further, inside the lagging quadrant, indicating downtrends against the USD which is the center of the RRG.

This is a pretty massive move showing the strength of the USD against all other currencies.

On the EUR/USD chart, we can see a test of a major support level of around 1.03.

Once that support breaks, the way down is wide open towards the 0.96 area where the market bottomed out in 2022.

On the flip side. When support holds and EUR/USD can take out 1.06 we will have a completed double bottom targeting the upper boundary of the current range.

Looking at the $USD index chart, which is the USD expressed against a basket of currencies, we see that an upward break has already taken place. Taking this as a lead suggests that the odds are tilted in favor of a downward break in EUR/USD.

Sectors and SPY

Despite the big drop earlier this week, the sector rotation on the weekly RRG has not drastically changed (yet). So far the strength for XLC and XLY remains present. Only XLF has rolled over but remains inside the leading quadrant.

A similar observation can be made on the daily version of this chart.

On the weekly chart of SPY, the price has dropped back to a double support area around 585 where the rising support line meets horizontal support coming off the October high.

So far this all remains within “normal behavior” for an uptrend.

When SPY breaks that double support level and leaves the channel a re-assessment of the situation is needed.

#StayAlert and have a great weekend — Julius

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Navigating the Indecisive SPY: What Investors Should Know

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When running my StockCharts Technical Rank (SCTR) scan on Thursday, I was a little surprised to find that 75 exchange-traded funds (ETFs) and large-cap stocks made the cut, especially after Wednesday’s selloff. It was a little ray of hope.

A quick sweep of the list didn’t reveal a particular sector or asset class to be dominant. The stocks and ETFs represented a broad segment of the stock market.

After going through the list, one security that caught my eye was the SPDR S&P 500 ETF (SPY), which closely follows the S&P 500 ($SPX). After the 2.98% drop in the S&P 500 on Wednesday, is SPY still technically strong? Let’s look at the daily SPY chart (see below).

FIGURE 1. DAILY CHART OF SPY ETF. The last two bars in the chart show that SPY is wavering. It’s not breaking below the mid-November lows, yet it doesn’t seem to want to move higher. It is trading below its 50-day moving average, the RSI is indicating slowing momentum, and the S&P 500 Bullish Percent Index is below 50. Chart source: StockCharts.com. For educational purposes.

Since mid-August, the SCTR (pronounced s-c-o-o-t-e-r) score has been hovering between the 70 and 90 levels. It’s now almost at 80. On Thursday, the ETF’s price closed at around the same level as Wednesday’s and is below its 50-day simple moving average (SMA). The relative strength index (RSI) is getting close to its oversold level.

The bottom line is that even though the SPY has a SCTR score of 79, and it hasn’t broken below the mid-November low, the RSI indicates momentum is weak, and the S&P 500 Bullish Percent Index ($BPSPX) is at around 41%, i.e., leaning toward bearishness. 

So, after a selloff like we just had, does it make sense to consider adding long SPY positions at this level? At the moment, the SPY is acting indecisive, but at some point, it’ll have to make a directional up or down move. A reversal with strong follow-through would be a signal to go long. The indicators displayed in the chart of SPY should support the reversal. If, on the other hand, SPY breaks below the mid-November low and the SCTR score falls below the 76 threshold, it would be a signal to unwind some positions. 

This is one chart to monitor as we wind down the year. We’ll see if Santa comes through next week!

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

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Westgold Shares Scoping Study for Expansion of Fortnum Gold Operation

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Westgold Resources (ASX:WGX,TSX:WGX,OTCQX:WGXRF) has completed a scoping study that evaluates an expansion of its Fortnum gold operation in Western Australia, the company said on Tuesday (December 17).

The study forms part of the company’s portfolio review, and shows a potential 10 year, fully integrated mine plan.

It outlines life-of-mine production of 713,000 to 871,000 ounces of gold, and covers Fortnum’s Starlight, Nathan’s and Yarlarweelor open pits, as well as the existing Starlight underground operation.

Also included in the study is a 91 percent increase in Starlight’s resource estimate. It now stands at 12.9 million tonnes at 2.7 grams per tonne gold for a total of 1.13 million ounces of gold.

“Fortnum is a mature, yet under drilled asset and is one of Westgold’s most profitable and productive operations,’ said Managing Director and CEO Wayne Bramwell, adding that Starlight has so far produced 800,000 ounces of gold.

“The scoping study contemplates a modest upfront capital investment to deliver a long life, fully integrated open pit and underground project of increased scale, supported by an expansion of our existing (900,000) processing plant to 1.5 million tonnes per annum,” he added in Tuesday’s press release.

Westgold said funding amounting to approximately $294 million will be needed over the expansion’s life. On a respective basis, open-pit pre-production capital, processing plant capital, life-of-mine underground capital development and working and exploration capital will require $39 million, $93 million, $113 million and $48 million.

Shares of the company rose as high as AU$3.25 in the wake of the news.

Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

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5 Best-performing Canadian Nickel Stocks of 2024

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After trending down in 2023, nickel prices climbed to a 10 month high in late May of this year. However, they’ve since pulled back to four-year lows. While this environment has been tough for nickel companies, some stocks are still thriving.

Supply is expected to outflank demand over the short term, but the longer-term outlook for the metal is strong. Demand from the electric vehicle (EV) industry is one reason nickel’s outlook looks bright further into the future.

Battery nickel demand is poised to triple by 2030, according to Benchmark. “Mid and high level performance EVs will be the primary driver of battery nickel demand growth in the coming years, particularly in Western markets,” said Jorge Uzcategui, senior nickel analyst at Benchmark. “There will be growth in China, but it won’t be as pronounced as in ex-China markets.”

As for Canada, nickel is listed as a top priority in the government’s Critical Minerals Strategy. The country is the world’s fifth largest producer of nickel, with much of its production coming from mines in Ontario’s Sudbury Basin, including Vale’s (NYSE:VALE) Sudbury operation and Glencore’s (LSE:GLEN,OTC Pink:GLCNF) Sudbury Integrated Nickel Operations.

In February, Canada Nickel Company (TSXV:CNC,OTCQX:CNIKF) announced its subsidiary NetZero Metals is planning to develop a US$1 billion nickel-processing plant in Ontario that will become North America’s largest once complete.

How have Canadian nickel stocks performed in 2024? Below are the top nickel stocks in Canada on the TSXV and CSE by share price performance so far this year. TSX stocks were considered, but didn’t make the cut.

All year-to-date and share price data was obtained on December 13, 2024, using TradingView’s stock screener. The top nickel stocks in Canada listed had market caps above C$10 million at that time.

1. Class 1 Nickel and Technologies (CSE:NICO)

Company Profile

Year-to-date gain: 533.33 percent
Market cap: C$35.9 million
Share price: C$0.19

Class 1 Nickel and Technologies’ flagship property is its Alexo-Dundonald nickel project near Timmins, Ontario. The past-producing asset hosts four nickel sulfide deposits. The company’s pipeline also includes the past-producing Somanike nickel-copper project near Val-d’Or, Québec, and the River Valley platinum group metals (PGMs) project near Sudbury, Ontario.

Class 1 Nickel released resource estimate updates for the Alexo South and Alexo North deposits in April and May of this year, respectively. The company said it expects to start work on a preliminary economic assessment for Alexo-Dundonald in the near term as part of its plan to bring the asset back into production.

On October 3, Class 1 Nickel put out an updated resource estimate for the Dundonald South nickel deposit. In the indicated category, the company reported a 781 percent increase in metric tons of ore and a 474 percent increase in pounds of nickel.

The Canadian nickel exploration company’s share price started off the year at C$0.06, and began climbing in April to reach a year-to-date high of C$0.40 on November 18.

2. Power Nickel (TSXV:PNPN)

Company Profile

Year-to-date gain: 318.18 percent
Market cap: C$187.23 million
Share price: C$0.92

Power Nickel is developing its 80 percent owned Nisk polymetallic property in Québec, which hosts nickel, copper, platinum and palladium mineralization. According to the company, it plans to create Canada’s first carbon-neutral nickel mine. The polymetallic nature of the project is a plus for the economic case for future nickel production in a low price environment.

This ongoing work has generated positive news flow for the company in 2024. After starting the year at C$0.24, Power Nickel began gaining in mid-April following two key announcements. First, the company released drill results from the newly discovered Lion zone 5 kilometers northeast of the main Nisk deposit. Shortly after, it announced the completion of its option to earn an 80 percent stake in Nisk from Critical Elements Lithium (TSXV:CRE,OTCQX:CRECF).

Power Nickel’s share price jumped more than 15 percent on May 10 to reach C$0.64 following news that drilling continued to expand the high-grade, near-surface Lion discovery, with notable assays including 14.42 meters at 0.59 grams per metric ton (g/t) gold, 69.14 g/t silver, 8.17 percent copper, 6.25 g/t palladium, 8.44 g/t platinum and 0.58 percent nickel.

In June, Power Nickel commenced an 8,000 meter summer drill program at Nisk, and closed a flow-through offering for gross proceeds of over C$20 million. Some of the biggest names in mining — Robert Friedland and Rob McEwen — participated.

The company’s excellent news flow continued into the fourth quarter with a series of stellar drill results from its Nisk winter drill program, including significant intersections as shared in its October 3, October 28 and November 11 news releases. Additionally, on December 5, Power Nickel announced it was executing a spinout of its interest in the Golden Ivan property in Chile into a wholly owned subsidiary Chilean Metals.

Power Nickel continued to climb before peaking at a year-to-date high of C$0.96 on December 12. On that same day, the company released another set of positive assay results from its work at Nisk.

3. Magna Mining (TSXV:NICU)

Company Profile

Year-to-date gain: 234.15 percent
Market cap: C$214.48 million
Share price: C$1.37

Magna Mining is a base metal exploration and development company based in Sudbury, Ontario. The company’s flagship assets are the Shakespeare Mine and the Crean Hill project. Shakespeare is a past-producing, nickel-copper-platinum group mine with major permits in place. The current deposit at Shakespeare hosts an NI 43-101 indicated open pit resource of 14.4 million MT. Crean Hill is a past producing nickel, copper and PGM mine.

In March, Magna announced the signing of a definitive off-take agreement with Vale Base Metals wholly-owned subsidiary Vale Canada for the advanced exploration portion of the Crean Hill project. A few months later, in June, it inked a toll milling agreement with Glencore Canada for the surface bulk sample of the 109 Footwall Zone at Crean Hill.

The company entered into a definitive share purchase agreement with a subsidiary of KGHM Polska Miedz (FWB:KGHA) to acquire a portfolio of base metals assets located in the Sudbury Basin, including the producing McCreedy West copper-nickel mine. In November, Magna completed an updated preliminary economic assessment at Crean Hill.

Magna Mining’s share price started off the year at C$0.57, and gradually climbing to double its value by September 13. It reached a year-to-date high of C$1.67 on December 4.

4. Tartisan Nickel (CSE:TN)

Company Profile

Year-to-date gain: 108.7 percent
Market cap: C$27.19 million
Share price: C$0.24

Tartisan Nickel s a Canadian battery metals exploration and development company focuses on developing the Kenbridge nickel-copper-cobalt project located in Northwestern Ontario, Canada.

Tartisan acquired additional exploration claims for the Kenbridge project in mid-May. In November, the company closed C$1.5 million in flow-through financing with proceeds primarily going to fund the exploration and development of the project.

Shares in Tartisan Nickel fluctuated significantly in 2024. The company kicked off the year at C$0.19 before falling to a low of C$0.10 on March 12. However, its share price climbed rapidly in May to reach a year-to-date high of C$0.26 on May 16. Although shares fell as low as C$0.12 in late June, its value had doubled back up to C$0.24 on December 13.

5. EV Nickel (TSXV:EVNI)

Company Profile

Year-to-date gain: 70.83 percent
Market cap: C$38.41 million
Share price: C$0.41

EV Nickel’s primary project is the 30,000 hectare Shaw Dome asset, which is situated near Timmins, Ontario. The property includes the high-grade W4 deposit, which has a resource of 2 million metric tons at 0.98 percent nickel for 43.3 million pounds of Class 1 nickel across the measured, indicated and inferred categories.

Shaw Dome also holds the large-scale CarLang A zone, which has a resource of 1 billion metric tons at 0.24 percent nickel for 5.3 billion pounds of Class 1 nickel across the indicated and inferred categories.

EV Nickel is working on integrating carbon capture and storage technology for large-scale clean nickel production, and has procured funding from the Canadian government and Ontario’s provincial government. In late 2023, the company announced it was moving its carbon capture research and development to the pilot plant stage.

The company’s news so far in 2024 includes the closure of a flow-through financing in March that ultimately saw EV Nickel raise C$5.12 million to fund the development of its high-grade, large-scale nickel resources.

In April, EV Nickel launched a 2024 exploration program that is aimed at advancing the CarLang trend and exploring other nickel targets. The most recent news out of the program came in early September with the announcement that diamond drilling at the Langmuir #2 high-priority nickel target had confirmed high-grade nickel, with intercepts such as 18.5 meters grading 1.07 percent nickel, 7.5 meters grading 1.67 percent nickel, 2 meters grading 3.27 percent nickel and 1 meter grading 5.11 percent nickel. EV Nickel described the results as ‘very encouraging.’

The Canadian nickel exploration company’s share price started off the year at C$0.30 before steadily climbing to reach a year-to-date high of C$0.79 on May 17.

FAQs for nickel investing

How to invest in nickel?

There are a variety of ways to invest in nickel, but stocks and exchange-traded products are the most common. Nickel-focused companies can be found globally on various exchanges, and through the use of a broker or a service such as an app, investors can purchase companies and products that match their investing outlook.

Before buying a nickel stock, potential investors should take time to research the companies they’re considering; they should also decide how many shares will be purchased, and what price they are willing to pay. With many options on the market, it’s critical to complete due diligence before making any investment decisions.

Nickel stocks like those mentioned above could be a good option for investors interested in the space. Experienced investors can also look at nickel futures.

What is nickel used for?

Nickel has a variety of applications. Its main use is an alloy material for products such as stainless steel, and it is also used for plating metals to reduce corrosion. It is used in coins as well, such as the 5 cent nickel in the US and Canada; the US nickel is made up of 25 percent nickel and 75 percent copper, while Canada’s nickel has nickel plating that makes up 2 percent of its composition.

Nickel’s up-and-coming use is in electric vehicles as a component of certain lithium-ion battery compositions, and it has gotten extra attention because of that purpose.

Where is nickel mined?

The world’s top nickel-producing countries are primarily in Asia: Indonesia, the Philippines and New Caledonia make up the top three. Rounding out the top five are Russia and Canada. Indonesia’s production stands far ahead of the rest of the pack, with 2023 output of 1.8 million metric tons compared to the Philippines’ 400,000 metric tons and New Caledonia’s 230,000 metric tons.

Significant nickel miners include Norilsk Nickel (OTC Pink:NILSY,MCX:GMKN), Nickel Asia, BHP Group (NYSE:BHP,ASX:BHP,LSE:BHP) and Glencore (LSE:GLEN,OTC Pink:GLCNF).

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

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Completion of Tranche 1 of the Placement

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Cyprium Metals Limited (ASX: CYM, OTC: CYPMF) (Cyprium or the Company) is pleased to announce the successful completion of Tranche 1 of the two-tranche placement to raise in aggregate A$13.5 million (before costs) via the issue of a total of 483,203,140 fully paid ordinary shares in the Company (Placement Shares) at an issue price of A$0.028 per Share, as announced by the Company on 13 December 2024 (Placement).

Highlights:

  • Tranche 1 of the Placement raised A$5.2 million (before costs).
  • Completion of Tranche 2 of the Placement to raise an additional A$8.3 million is subject to shareholder approval at an extraordinary meeting to be held in January 2025.
  • Cyprium intends to undertake a retail entitlement offer to existing eligible shareholders on the same terms as the Placement.

Pursuant to the terms of the Placement, subscribers were offered 1 free-attaching unlisted option for every 2 Placement Shares subscribed for, with an exercise price of A$0.042 per option and expiry date of 31 December 2027 (Placement Options).

Under Tranche 1 of the Placement, the Company confirms that it has today issued:

  • 185,714,285 Placement Shares; and
  • 92,857,143 Placement Options.

Tranche 2 of the Placement, comprising 297,488,855 Placement Shares and 148,744,427 Placement Options will be issued subject to shareholder approval which will be sought at a meeting of the Company’s shareholders in January 2025. Shareholder approval is also being sought for the issue of 20,000,000 options on the same terms as the Placement Options to the cornerstone investor of the Placement.

Proceeds of the Placement will be used as follows:

  • Nifty site costs;
  • Permit support and DFS preparation and costs;
  • Tenement maintenance and geology work;
  • Working capital and costs of the Placement.

Canaccord Genuity acted as Lead Manager to the Placement.

Click here for the full ASX Release

This post appeared first on investingnews.com

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Gold, Silver and Bitcoin Prices Fall as Fed Caps Off Year with Rate Cut

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The US Federal Reserve announced an interest rate cut of 25 basis points on Wednesday (December 18), reducing its target range to 4.25 to 4.5 percent in its third reduction of the year.

Policymakers also signaled that only two rate cuts are expected in 2025 versus the four originally forecast.

In comments after the Fed’s meeting, Chair Jerome Powell emphasized that the Fed will remain cautious next year, focusing on labor market strength and further progress in curbing inflation.

‘I think the actual cuts that we make next year will not be because of anything we wrote down today. We’re going to react to data; that’s just the general sense of what the committee thinks is likely to be appropriate,’ he said.

Gold, silver and markets fall post-rate cut

Financial markets experienced significant volatility following the Fed’s announcement.

The Dow Jones Industrial Average (INDEXDJX:.DJI) dropped by 1,123 points on Wednesday, a 2.58 percent decline, which extended its losing streak to 10 consecutive days — the longest since 1974.

The S&P 500 (INDEXSP:.INX) dropped 178.45 points, or 2.95 percent, ending at 5,872.16.

Meanwhile, the Nasdaq Composite (INDEXNASDAQ:.IXIC) recorded the steepest decline of the three on Wednesday, losing 716.37 points, or 3.56 percent, to close at 19,392.69.

The selloff was triggered by the Fed’s cautious tone and change in its 2025 rate cut projections. Many market participants had anticipated a more aggressive series of reductions, and took the time to reassess their strategies.

Some experts have described the Fed’s move as a “hawkish cut.’ The Fed’s hesitation about future policy shifts has heightened investor uncertainty, leading to widespread profit taking in the market.

Bond yields also rose sharply as investors now expect tighter financial conditions for an extended period.

The gold price experienced volatility, shedding 2 percent following the rate cut, slipping to US$2,585 per ounce. The decline marked the first time the yellow metal has fallen below US$2,600 since mid-November.

While gold rebounded in after-hours trading, sister metal silver fell 3 percent after the rate cut and is holding in the US$29.20 per ounce range.

Powell talks Trump and Bitcoin after meeting

In a press conference after the Fed’s meeting, Powell addressed questions about how the central bank’s decisions may interact with economic policies proposed by President-elect Donald Trump.

While emphasizing the Fed’s independence, Powell also acknowledged the uncertainty currently surrounding Trump’s proposed tax cuts, tariff increases and immigration measures.

‘It’s very premature to make any kind of conclusions. We don’t know what will be tariffed, from what countries, for how long, in what size,’ Powell explained to reporters on Wednesday.

That said, he noted that Fed officials have started assessing potential scenarios. Powell also said Trump’s policies could have inflationary effects, particularly through increased tariffs and fiscal stimulus measures.

For instance, the Fed’s projections show economic growth remaining slightly above trend in 2025, with inflation staying above target for at least two more years. The jobless rate is expected to remain low, hovering around 4.3 percent.

These conditions, Powell said, will guide future monetary policy decisions, irrespective of changes in fiscal policy.

He also clarified the central bank’s stance on digital assets, responding to Trump’s campaign discussions on creating a strategic reserve for popular cryptocurrency Bitcoin.

Powell was clear that the Fed is not authorized to own Bitcoin under existing laws, and has no plans to advocate for legislative changes to enable such holdings.

‘That’s the kind of thing for Congress to consider, but we are not looking for a law change at the Fed,’ he said.

Following Powell’s comment, Bitcoin dropped below US$100,000, its steepest decline since September of this year.

Moving forward, the Fed reiterated its goal to bring inflation back to its benchmark 2 percent target.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

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Crowd crush kills 35 children at funfair in Nigeria, police say

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At least 35 children were killed and six others critically injured in a crowd crush at a funfair in southwest Nigeria on Wednesday, police said.

Eight people have been arrested for their alleged involvement in the incident at the Islamic school in the city of Ibadan, an Oyo state police spokesperson said in a statement Thursday.

The event’s main sponsor is among those detained, police said.

According to local radio station Agidigbo FM, the organizers of the event – identified as the Women in Need of Guidance and Support (WING) – expected to host 5,000 children under the age of 13 at the free event, where they could win prizes like scholarships.

Nigerian President Bola Tinubu expressed his condolences through a statement from his spokesperson, state news agency NAN News reported.

“In this moment of mourning, President Tinubu stands in solidarity with the affected families and offers prayers that the Almighty God will grant peace to the souls of those who have departed in this unfortunate event,” the statement said.

The president also urged the Oyo State Government to take necessary steps to prevent a similar tragedy from occurring, according to NAN.

Oyo State Governor Seyi Makinde said it was “a very sad day.”

“We sympathise with the parents whose joy has suddenly been turned to mourning due to these deaths,” Makinde posted on Facebook.

“I want to reassure our people that anyone directly or remotely involved in this disaster will be held accountable. Please remain calm as the security agencies investigate this unfortunate incident.”

The case has been transferred to the homicide section of the state’s criminal investigation department, police said.

“The Oyo State Police Command sympathizes with all the families and loved ones affected by the tragedy and assures the good people of the state that justice will be served accordingly,” the police spokesperson said.

Nigeria, a West African nation home to more than 236 million people, has seen several deadly crowd crushes in recent years.

In February, the Nigeria Customs Service confirmed that an unspecified number of people were trampled to death during a crowd surge as they waited for discounted rice at its office in Lagos, the country’s largest city.

Many children were among 30 people killed in a crowd crush at a church event in the southeastern city of Port Harcourt in 2022, according to police and security officials.

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Pakistan denounces US sanctions on its missile program as ‘discriminatory’

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Pakistan on Thursday denounced new US sanctions on the country’s ballistic missile program as “discriminatory” that put the region’s peace and security at risk.

Pakistan’s foreign ministry warned in a statement that the sanctions “have dangerous implications for strategic stability of our region and beyond.”

It also cast doubt on US allegations that targeted businesses were involved in weapons proliferation because previous sanctions “were based on mere doubts and suspicion without any evidence whatsoever.”

It also accused the US of “double standards” for waiving licensing requirements for advanced military technology to other countries.

The sanctions freeze any US property belonging to the targeted businesses and bar Americans from doing business with them.

The US State Department said one such sanctioned entity, the Islamabad-based National Development Complex, worked to acquire items for developing Pakistan’s long range ballistic missile program that includes the SHAHEEN series of ballistic missiles.

The other sanctioned entities are Akhtar and Sons Private Limited, Affiliates International and Rockside Enterprise.

US State Department spokesman Matthew Miller said Wednesday on X that the US had “been clear and consistent about our concerns” over such weapons proliferation and that it would “continue to engage constructively with Pakistan on these issues.”

The sanctions were also opposed by the party of Pakistan’s imprisoned former Prime Minister Imran Khan.

Zulfiqar Bukhari, a Khan’s spokesman, took to the social platform X to criticize the administration of US President Joe Biden, saying “we strongly oppose US sanctions on the National Development Complex and three commercial entities.”

The latest US sanctions came months after similar measures were slapped on other foreign entities, including a Chinese research institute, after the US State Department accused them of working for the National Development Complex, which it says was involved in the development and production of Pakistan’s long-range ballistic missiles.

Analysts say Pakistan’s nuclear and missile program is primarily aimed at countering threats from neighboring India.

Security expert Syed Muhammad Ali called the sanctions “short sighted, destabilizing and divorced from South Asian regional strategic realities.”

Pakistan became a declared nuclear power in 1998, when it conducted underground nuclear tests in response to those carried out by its rival and neighbor India. The two sides regularly test-fired their short, medium and long-range missiles.

The two South Asian rivals have fought two of their three wars over Kashmir since gaining independence from Britain in 1947. The disputed Himalayan region is split between them and claimed by both in its entirety.

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