Morning Wrap: ASX 200 flat, S&P 500 snaps 8-day winning streak

ASX 200 futures are trading 5 points lower, down -0.07% as of 8:20 am AEST.

The S&P 500 fails to extend its winning streak to nine as Powell takes a hawkish stance at his International Monetary Fund speech, US 10-year yield stages a sizeable bounce from recent lows, AAII bullish sentiment spread surges and China slips back into negative inflation.

Let's dive in.

S&P 500 SESSION CHART

S&P 500 snaps win streak, closes near worst levels (Source: TradingView)

MARKETS

Another modified (aka shorter) Morning Wrap. Cool insights will be back next week!

• S&P 500 snaps 8-day win streak, the best rally since 2021

• A 9-day run for the S&P 500 has only happened 31 times in the last 95 years

• US 10-year yield rallies 14 bps, marking a sizeable bounce from 4.5%

• All S&P 500 sectors lower, led by growth and yield-sensitive sectors

• Higher-for-longer Fed and yield bounce weighed on equities

• Mega cap tech stocks are now outperforming small caps by the largest margin since the Dot Com Bubble

• AAII sentiment spread marks largest week-over-week increase in bullish sentiment in its survey history, bearish sentiment below average for first time in eight weeks

• Markets more focused on Treasury auctions as a potential driver of yields (Bloomberg)

• Investors worry further declines in yields could keep Fed in a hawkish stance (Reuters)

• Japanese investors bought most Treasuries in six months in September (Bloomberg)

• China ask brokerages to restrict leverage for stock trades, sources say (Reuters)

• IPO market unusually quiet in historically busy period of November (CNBC)

• Bitcoin reached 18-month high of US$37,000 on regulatory optimism (Yahoo)

STOCKS

• Meta CEO Mark Zuckerberg dumps US$35m worth of stock, first sale in two years

• Disney streaming subscriber growth tops expectations, company plans to accelerate cost cutting (Bloomberg, Reuters)

• Chinese local media says Nvidia plans to release three new chips (Reuters)

• Affirm shares surge on quarterly earnings beat (Reuters)

CENTRAL BANKS

• Fed's Bostic and Barkin says economy has yet to feel the full impact of hikes (Bloomberg)

• BOJ tweaked YCC to maintain market functioning (Reuters)

• BOJ Ueda says central bank will move carefully on raising interest rates (FT)

• Former BOJ executive believes NIRP will end as early as January (Reuters)

• ECB VP de Guindos says rate cut talk clearly premature (Bloomberg)

• ECB's Villeroy says central bank done with rate hikes unless more shocks (Bloomberg)

• Powell says inflation has given policymakers a few “head fakes” and that the Fed will not hesitate to hike further (CNBC)

• Powell elaborates on the fed's current, conditional pause

GEOPOLITICS

• Israeli troops in heart of Gaza City as G7 urges humanitarian pause (Reuters)

• Blinken says Palestinian Authority should rule unified Gaza and West Bank (FT)

• US fires upon weapons depot in Syria used by Iran, citing retaliation for attacks (Reuters)

• Biden, Xi may resume of military-to-military communications to global stability (Axios)

• Bipartisan group of US lawmakers want Biden administration to raise tariffs on Chinese-made vehicles (Reuters)

ECONOMY

• China slips back into deflation on lower food prices and soft demand (Reuters)

• Japan could give $13bn in aid for chips and generative AI in stimulus budget (Nikkei)

• Japan's current account surplus tripled to record in H1 (Bloomberg)

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ASX corporate actions occurring today:

• Trading ex-div: SSR Mining (SSR) – $0.08, Janus Henderson Group (JHG) – $0.6 

• Dividends paid: Newmark Property REIT (NPR) – $0.01 

• Listing: Great Dirt Resources (GR8) at 12:30 pm, Tolu Minerals (TOK) at 12:00 pm

Economic calendar (AEDT):

• 11:30 am: RBA Statement of Monetary Policy

• 6:00 pm: UK Q3 GDP

• 11:30 pm: ECB President Lagarde Speech

• 2:00 am: US Consumer Sentiment