This week will be an action-packed week in the financial markets, with the Federal Reserve’s first meeting of the year, plus the continued performance reports of major tech companies, and the latest US employment report.
US economic data showed moderate inflation. A US Commerce Department report showed the Personal Consumption Expenditure index – the Federal Reserve’s favorite gauge of inflation – actually remained unchanged at 2.6% yoy in December.
The S&P 500 ended five sessions of gains by slipping from record highs on Friday (26/01/24), triggered by Intel’s more than 11% plunge to a six-week low after earnings estimates missed estimates as it catches up in the AI race and also deals with a weak PC market; meanwhile US economic data showed moderate inflation.
US GDP 4Q23 showed a stronger-than-expected figure, with slowing inflation supported soft landing expectations, has pushed the bond yields lower. The US recorded economic growth in 4Q23 of 3.3%, down from 4.9% in the third quarter, although it surpassed economists’ expectations of 2%, driven by strong public spending.
The S&P 500 closed at its record level for the fifth consecutive session on Thursday (25/01/24), on the back of mostly favorable corporate earnings sentiment, while stronger-than-expected US GDP 4Q23 figures and slowing inflation supported soft landing expectations, pushing bond yields lower.
US Treasury yields edged higher after the release of S&P Global US Manufacturing & Services PMI data which grew further in expansionary territory in January, pointing to underlying strength in the US economy, supporting the notion of no near-term interest rate cut by the Federal Reserve.
The S&P 500 gave up most of its gains on Wednesday, due to rising US Treasury yields, but overall the three major US indices still added a fourth consecutive day of gains, with the NASDAQ leading the way by 0.4% at an all-time-high, on the back of a 10% surge in Netflix’s share price which prompted investors to buy Tech stocks again.
The S&P 500 closed at a new all-time high of 4864.11 for the third consecutive session on Tuesday (23/01/23) on the back of a bullish view on the Technology sector.
The S&P 500 closed at a new all-time high of 4864.11 for the third consecutive session on Tuesday (23/01/23) on the back of a bullish view on the Technology sector. As for the NASDAQ itself, it led the gains of the major US indices by rising 0.4% to a record high, while the Dow Jones Industrial Average left the 38,000 mark again by
falling 0.3%.
