Daily Report | 30 April 2024
The S&P 500 closed 0.3% higher on Monday (29/04/24), supported by rising Tesla and Apple shares in the first quarter earnings season, a day ahead of the US Federal Reserve’s FOMC Meeting.
The S&P 500 closed 0.3% higher on Monday (29/04/24), supported by rising Tesla and Apple shares in the first quarter earnings season, a day ahead of the US Federal Reserve’s FOMC Meeting.
THREAT OF US STAGFLATION OFFSET BY STRONG S&P500 CORPORATE EARNINGS. The S&P 500 added 2.7% last week, supported by strong earnings reports from tech giants Microsoft and Alphabet (although Meta Platforms saw a sharp drop of over 10% in its share price following higher capex estimates), as well as the PCE PRICE INDEX report for March.
US Commerce Department data showed benchmark Inflation rose moderately in March on an annualized basis while being in line with estimates on a monthly basis.
US stocks closed higher on Friday, the S&P 500 and Nasdaq recorded their biggest weekly percentage gains since early November 2023 on the back of a rally in giant stocks following strong quarterly earnings results from major Tech companies Alphabet, Microsoft, Amazon, and Nvidia; alongside moderate Inflation data.
A slower-than-expected US economic growth data amid persistently smoldering inflation. GDP for QUARTER 1 this year grew at the slowest pace in almost 2 years at 1.6% qoq, missing forecasts of 2.5% and also down from 3.4% in the previous quarter; while the benchmark Core PCE Prices Inflation surprisingly rose in the first quarter, increasing by 3.7% (above forecasts of 3.4% which had also firmed from 2.0% in the previous quarter).
Wall Street stocks closed lower on Thursday’s trading (04/25/24) with the DJIA leading the way down by nearly 1%/375points, as markets were surprised by slower-than-expected US economic growth data amid persistently smoldering inflation, coupled with a sell-off in large-cap stocks triggered by Meta Platforms’ disappointing performance.
The USD 70 billion 5-year US TREASURY auction pushed bond yields higher and weighed on the stock market. The 10-year US Treasury also rose 5 bps to a yield of 4.646%.
Wall Street closed variably flat within a thin range of movement, where S&P500 and NASDAQ still posted gains of 0.02% and 0.1% respectively; while DJIA eroded 0.1%/dropped 42 pts as US Treasury yields rose and the Industrial sector plunged after Boeing’s STOCK shed 2% as their credit rating was downgraded by Moody’s to near “junk” level.
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