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Buy Programs Help Limit Losses In Pre-Holiday Trade

US STOCKS
  • A string of sizeable buy programs (recently >1000 names) help equity indices off session lows, with earlier declines trimmed to -2.1% for e-mini S&P and -3.1% for Nasdaq 100 in seemingly thin trade ahead of the Christmas break.
  • Main movers are as earlier in the session: In a reversal of yesterday’s gains, today’s drivers of SPX are IT (-3.2%) and consumer discretionary (-3.1%) whilst health care and consumer staples (-0.6%) outperform.
  • A gloomy outlook from chipmaker Micron Technology Inc. weighed on both indexes, whilst from a macro perspective, higher Fed terminal pricing is a culprit at 4.89% in May’23 for +4bp since stronger data (with 2YY close to session highs +5bp on the day).

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