US markets closed higher on Wednesday, driven by strong tech earnings and positive comments from Fed Chair Powell. This positive sentiment rippled globally, with Asian and European markets also experiencing significant gains. However, some sectors showed weakness, and future market trends remain uncertain.
– Equity markets have performed well in Q1 2024, driven by anticipation of a soft landing for the US economy and potential Fed rate cuts.
– The US economy continues to show resilience, with strong consumer spending and low unemployment, but cracks are emerging in areas such as credit card debt and auto loan delinquencies.
– US stocks climbed higher in the quarter, with the S&P 500® Index gaining 10.6%, led by technology stocks, particularly those benefiting from the AI boom, such as NVIDIA.
– Developed market international stocks also had a solid start to the year, with the MSCI EAFE Index up 10% (in local currency), mainly driven by Japan.
– Emerging markets stocks lagged with a 4.3% return, primarily due to China’s continued underperformance.
