The S&P 500 inched closer to a new closing high in Tuesday’s session. Stocks finished higher to kick off the final trading week of 2023. The report added that Goldman cited investor concerns over the the banks’ exposure to local government debt, earnings risk as well as diverging fortunes among individual banks. Tom https://forexhero.info/ Essaye of The Sevens Report said Thursday that the market has thus far taken a “glass half full” to most data sets and events this year. Threads went live on Wednesday, with Meta CEO Mark Zuckerberg and Meta seemingly seeking to sway Twitter users frustrated with Elon Musk’s changes to the platform to jump ship.

1. Initial jobless claims increased to 248,000 last week, though the total was only 3,000 higher than the Dow Jones estimate, the Labor Department reported Thursday.
2. From the US to Europe and Japan, equities hit all-time highs, with the most-valuable chipmaker up 16% — adding $277 billion to its market capitalization.
3. It is not a solicitation or a recommendation to trade derivatives contracts or securities and should not be construed or interpreted as financial advice.

To quote Morgan Stanley analysts, “The U.S. economy is humming along, with nearly all data validating the soft landing.” Expectations of rate cuts, however, will not sustain an unbroken market rally over the coming days or months, analysts said. At its meeting this week, the Fed decided to leave interest rates unchanged, extending a pause of a near-historic series of rate hikes deployed to cool fast-rising prices. Going further, the Fed said it expects to impose three quarter-point interest rate cuts next year. Oil prices climbed more than 2% on Tuesday as investors monitored conflict in the Middle East and the likelihood of forthcoming U.S. interest rate cuts. Roughly 12 New York Stock Exchange-listed stocks fell for every advancer in early trading Thursday, as fears of even tighter Fed policy weighed on investor sentiment.

Meta CEO Mark Zuckerberg said on his official Threads account on Thursday that 20 million users had signed up for the platform after launching. The stock has surged more than 52% year to date, but has traded flat over a 12-month period. The total was more than double the 220,000 Dow Jones estimate and was boosted by growth of 232,000 in the pivotal leisure and hospitality sector. Construction added 97,000 while trade, transportation and utilities grew by 90,000.

Dow Jones 30 Industrial

The S&P 500 and Nasdaq, meanwhile, are on pace for weekly losses of 0.9% and 0.8%, respectively. Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors. We advise you to carefully consider whether trading is appropriate for you based on your personal circumstances. This information is made available for informational purposes only. It is not a solicitation or a recommendation to trade derivatives contracts or securities and should not be construed or interpreted as financial advice.

Do stock-market investors care more about Nvidia than the Fed? Inflation data will provide a test.

S&P 500 futures gained 0.1%, and Nasdaq-100 futures climbed 0.2%. Stock futures were slightly higher Tuesday morning, as traders tried to maintain their momentum seen in recent weeks. Bristol shares were up marginally, while RayzeBio doubled in the premarket. Kaplan said during a CNBC “Squawk Box” interview that officials will want to avoid keeping policy too strict and will need to adjust their benchmark borrowing late lower if the rate of inflation continues to decline. Home prices rose 4.8% nationally in October compared with October 2022, according to the S&P CoreLogic Case-Shiller home price index. That’s a jump from the 4% annual increase in September and marks the strongest annual gain seen in 2023.

There’s even 8.4% odds that rates will rise three quarters of a point by the end of the November meeting. Interest rate traders now see a 95% certainty the Fed will raise rates a quarter point to 5.25%-5.50% in less than threee weeks, at the July 26 meeting. Odds that rates will rise another quarter point, to 5.50%-5.75%, at the September meeting are now 28.5%, up from 18.1% Wednesday. ET showed that the ISM Services index for June registered a 53.9 reading, up from 50.3 in May and better than the 51.3 estimate.

Dow and S&P 500 on pace for worst daily performances in more than a month

For the week, the index is down 3% and headed for its worst weekly performance since March. However, traders may now be expecting a hotter number that leads to the Fed resuming its hiking campaign this month after a pause at the June meeting. Traders are pricing in an approximately 92% chance of a hike at the central bank’s meeting later this month, according to CME Group’s FedWatch tool.

From the US to Europe and Japan, equities hit all-time highs, with the most-valuable chipmaker up 16% — adding $277 billion to its market capitalization. That’s the biggest single-session increase in value ever — eclipsing a $197 billion gain made by Meta Platforms Inc. With the numbers now in, bulls are calculating Nvidia’s new price-to-earnings ratio, or how much investors are paying for future growth.

The Motley Fool has positions in and recommends JPMorgan Chase. “There will be a slowdown in the rate of economic growth, but no recession,” Sekera said. “The Fed talking rate cuts as the catalyst to keep the torrid market frothy is going to disappear going toward the end of the year,” Agati said. The global stock rally powered ahead as Nvidia Corp.’s bullish outlook rekindled the artificial-intelligence mania and data showed the world’s largest economy is still going strong.

The new payout would give Bank of America a dividend yield of 3.3%, based on its closing price of $29.08 per share on Wednesday. “While we are impressed with Threads and note Twitter has its current difficulties, not every Meta product launch has succeeded,” KeyBanc analyst Justin Patterson wrote in a Thursday note. “We believe watching downloads and ultimately demographics (are these existing Twitter users or net new users to the category?) will be crucial in gauging traction.” “Sustained y/y visits growth suggests mobility continues to improve and SG [same-store sales growth] can maintain momentum, removing a key overhang on the stock,” the firm said in a Thursday note.

Thursday Macro & Markets Update – 02.22.24

Wall Street came into the holiday-shortened week with momentum, after the S&P 500 on Friday registered its eighth straight weekly advance and longest streak since 2017. The Dow and Nasdaq Composite also notched an eight-week winning streak. The figure also beat expectations of economists polled by Reuters, who expected the surplus to decline to AU$10.5 billion. European equity markets are set to open marginally lower, according to IG data. Yields and prices move in opposite directions and one basis point equals 0.01%.

That’s about 0.35% from the highest level the index has ever concluded a session at, which was seen in January 2022. “I don’t love the term, but if you were to describe what is happening it’s definitely Goldilocks for the market,” said Jan Szilagyi, CEO and co-founder of Toggle AI. “Inflation’s coming down, the economy is still chugging along, and the hiking cycle’s over. On all of these macro trends, the rally has been justified.”

Gursky added that Textron’s valuation has already priced in a recessionary environment and reduced business jet demand. Like the Swiss Market Index (SMI), the Dow Jones is a price index. The shares included in it are weighted according to price; the index level represents the average of the shares included in it. The S&P 500, Nasdaq 100, and python tornado web server Dow Jones Industrial Average were all set to open lower on Monday as investors trimmed their bets after a bumper week. But the economy will likely avert a major stumbling block next year, Sekera added, allowing inflation to reach the Fed’s target rate while avoiding a downturn. Dow Jones Industrial Average futures were up 43 points, or 0.1%.

Any examples given are provided for illustrative purposes only and no representation is being made that any person will, or is likely to, achieve profits or losses similar to those examples. DailyFX Limited is not responsible for any trading decisions taken by persons not intended to view this material. The S&P 500 is commonly seen as a benchmark for the broader U.S. stock market. Since its inception in 1957, the U.S. economy has been hit by 10 recessions, during which time the S&P 500 declined by an average of 31%. In other words, if the economy does slip into a recession this year, history says the stock market would suffer a substantial drawdown.

As for biotech stocks, Krinsky said the sector could be trying to break out. The market is feeling good about the prospects of a soft landing. All 11 sectors of the benchmark index were higher in afternoon trading, helping the index rise 0.5%. Real estate, utilities and industrials were the best performing sectors, all up about 0.8%. On the other hand, communication services posted the smallest gain with a 0.3% advance.

Roach pointed to the ADP private payroll report, job opening and turnover data and manufacturing index readings as signs that Friday’s closely followed jobs report should be strong. And that could spell bad news for those hoping the Federal Reserve does not return to raising interest rates after pausing at the June meeting, he said. U.S. Treasury yields climbed on Thursday as investors awaited key economic data and assessed the interest rate outlook after the Federal Reserve’s latest meeting minutes were published. “The data leading up to Friday’s big employment release are pointing to another healthy jobs report,” Roach said. “Unless Friday’s report is much weaker than expected, the Fed will not likely change its plans to increase rates during the next regularly scheduled meeting later this month.” Private sector jobs increased by 497,000 in June, according to data from payroll processing firm ADP, in the biggest monthly gain since July 2022.