In a significant ruling, the Fifth Circuit Court of Appeals struck down Nasdaq's diversity board rules, which had been approved by the SEC in a narrow 3-2 decision in 2021. The court's decision, rendered by a vote of 9-8, concluded that these rules did not align with the legal framework governing the SEC. This ruling represents a notable setback for the diversity, equity, and inclusion movement within corporate America, particularly following the heightened focus on these issues after the George Floyd protests in 2020. The Nasdaq rules aimed to enhance board diversity by requiring listed companies to disclose their diversity statistics and, in some cases, to have a minimum number of diverse directors. This decision raises questions about the future of similar initiatives aimed at promoting diversity in corporate governance. [1d7cb55a]
Meanwhile, the US stock market, including the Nasdaq, has been consolidating its gains after a strong performance in November. The Nasdaq recently experienced a 10% correction, attributed in part to deleveraging from the strengthening Yen. Analysts view this correction as a dip-buying opportunity, especially as the Nasdaq has pulled back to a major trendline around the 18900 level. On the 4-hour chart, a downward trendline is defining the current bearish momentum, while the 1-hour chart shows the price printing higher highs and higher lows. Market expectations include at least two rate cuts by the end of the year, which could further influence the Nasdaq's performance. Upcoming economic indicators such as US Job Openings, Consumer Confidence reports, and the FOMC Policy Decision are anticipated to impact market dynamics. [df8bce60] [d2535047]