Results for: Economic Data

S&P 500 and Nasdaq futures surged on Wednesday, fueled by strong earnings from Tesla and anticipation of upcoming economic data. Megacap stocks led the rally, with Tesla soaring 9.9% premarket after announcing plans for affordable models. Other growth stocks, including Amazon, Microsoft, and Meta Platforms, also advanced significantly. The US Senate’s passage of a bill potentially banning TikTok contributed to gains in Meta and Snap. Corporate earnings season is in full swing, with Meta, Microsoft, and Alphabet among those slated to report this week. The Personal Consumption Expenditures (PCE) index, the Fed’s preferred inflation gauge, is expected to be released on Friday, providing insights into the central bank’s interest rate policy. Visa and Texas Instruments also reported strong results, boosting their stock prices. Chip stocks like Arm Holdings and Micron Technology also benefited from the positive sentiment.

The Nasdaq Composite continued its upward trend yesterday, extending the rally that began last week. This move was driven by a mixed bag of economic data, including positive news on the inflation front but concerning news on the labor market. The market’s focus was primarily on the reduced likelihood of a more aggressive interest rate hike path, which triggered a relief rally. The Nasdaq Composite closed the gap with the blue 8 on the daily chart, indicating a better balance in the market after the recent selloff. The 38.2% level and moving average provide potential support, while the sellers may aim to enter around the Fibonacci level for a potential drop. Buyers, on the other hand, seek a break above the resistance to increase bullish momentum. On the 4-hour chart, sellers will find a favorable risk-to-reward setup around the 15929 resistance, where the red 21 moving average and 50% Fibonacci retracement level converge. Breaking above this zone would strengthen bullish bets for the buyers.

The U.S. dollar recovered in early European trading on Wednesday after a decline in the previous session, with traders closely monitoring forthcoming economic data for indications of the Federal Reserve’s upcoming monetary policy decisions.

The dollar’s recent slide was mostly attributed to data indicating a decline in U.S. business growth, with activity falling to a four-month low in April. However, hawkish comments from Federal Reserve officials have suggested that this particular data point is unlikely to result in rate cuts being moved forward to the summer.

Gross domestic product data for the first quarter and personal consumption price expenditures data, the Fed’s preferred inflation measure, are expected to be released on Thursday and Friday, respectively, and may trigger more significant market movements. The first Fed rate cut is generally anticipated to occur in September, with November being the second most likely month and June now considered unlikely.

In Europe, the euro gave up some of its gains from the previous session, while the pound fell after initially benefiting from positive data on UK business growth. The Bank of England is anticipated to lower interest rates by at least half a percentage point this year, while the European Central Bank has indicated a rate cut at its next policy meeting in June.

In Asia, the yen weakened, bringing USD/JPY closer to the 155 level, despite warnings from Japanese authorities about possible government intervention to support the currency. The Bank of Japan’s policy meeting on Friday will be closely watched for any shifts in its outlook on inflation and economic growth.

U.S. stocks closed higher on Tuesday, recording gains for the second straight session. The CNN Money Fear and Greed index showed further improvement in the overall market sentiment, while the index remained in the “Fear” zone on Tuesday. The Dow Jones closed higher by around 264 points to 38,503.69, the S&P 500 rose 1.20% at 5,070.55, and the Nasdaq Composite climbed 1.59% at 15,696.64 during Tuesday’s session.

Recent economic data has revealed higher-than-predicted inflation, surpassing both market projections and the Reserve Bank of Australia’s (RBA) own estimates. This development casts doubt on the possibility of RBA interest rate cuts in the near future. The Australian dollar experienced an immediate surge in value following the data release, signaling market optimism.

The Australian dollar (AUD) has strengthened after the release of higher-than-expected inflation figures for the January-March quarter, casting doubt on the possibility of interest rate cuts by the Reserve Bank of Australia (RBA) in 2024.

The US dollar struggled on Wednesday, extending losses incurred against the euro and sterling on Tuesday. The euro and sterling both benefited from positive economic data, while weaker US business growth and easing inflation pressures weighed on the dollar. Meanwhile, the yen remained weak despite intervention warnings from Japanese officials.

– Global financial markets rallied in 1Q24, with large-cap tech stocks leading the way.
– Strong economic data and continued momentum trading in AI-related stocks outweighed hawkish FOMC commentary on higher interest rates.
– Interest rates rose, but expectations for a recession receded.
– Large-cap stocks outperformed small-cap stocks, with the NASDAQ continuing to rally despite rising interest rates.
– Large-cap dominance was concentrated in a few companies such as Amazon, Microsoft, Meta, and Nvidia.

EUR/USD has retreated from its earlier high of 1.0695, dropping to 1.0655 as market participants digest mixed economic data. While the data doesn’t alter the European Central Bank’s (ECB) plans for a rate hike in June, it suggests they may be keeping their options open for the future.

The Nasdaq Composite closed higher yesterday due to a lack of negative news. Geopolitical fears surrounding Israel-Iran tensions subsided, potentially contributing to the positive sentiment. However, inflationary pressures remain a concern ahead of upcoming US economic data releases. The index rallied from support at 15162 and encountered resistance at 15453, where a break above or below could indicate future price direction. The Fed’s recent shift in stance indicates that inflation may continue to weigh on prices. Key economic data to watch this week include US Flash PMIs, US Q1 GDP, US Jobless Claims, and US PCE report.