Both the S&P 500 and Nasdaq experienced their worst week since April, with the Nasdaq falling 3.6% amid concerns over potential tighter U.S. semiconductor export restrictions to China and comments from Donald Trump regarding Taiwan. The “Magnificent Seven” tech stocks saw a collective 5% decline, with semiconductor companies like Nvidia and Intel dropping nearly 9%. […]
Politics take centre stage in the markets. Meanwhile, the US economy is experiencing slowing growth, rising unemployment, and cooling inflation, suggesting imminent interest rate cuts. In China, efforts to stimulate local demand are falling short, and the banking sector is under significant stress.
US markets once again ended the week largely flat, as political developments in the US and France captured investor attention. Despite easing inflation, US Treasury yields rose due to uncertainty around the upcoming elections. The US dollar strengthened, while the Japanese yen hit a 38-year low against the dollar.
It was a relatively quiet week in the financial markets, with most indices finishing close to where they started. French President Macron dissolved the National Assembly after a far-right victory in the EU parliament elections. The Swiss National Bank cut interest rates, while the Japanese yen weakened against the US dollar.
US equities surge as S&P 500 hits 25 all-time highs this year, driven by tech stocks and semiconductor outperformance. Despite slower GDP growth, concerns arise over consumer fatigue and rising default rates, while labor market strength shows signs of softening. Gold’s prominence grows amid central bank purchases and other major economies initiate interest rate cuts. […]
US stocks concluded the last trading day of May on a high note, marking the sixth positive month in the last seven for all three major indexes. The S&P 500 and Nasdaq Composite posted their best May performances since 2003, while the Dow Jones Industrial Average saw its best May since 2020.
Last week, the S&P 500 narrowly extended its five-week winning streak, registering a +0.03% gain, while the Nasdaq surged +1.4%; however, the Dow fell -2.3%. In the coming week, bond markets face a busy slate of Treasury auctions worth $183B and market focus shifts to inflation data due on 31st May
After a robust 2023, the US economy is showing signs of stabilizing, with modest growth reported in the first quarter of 2024, indicating a possible tapering of economic expansion. Inflation remains persistent, prompting cautious monetary policy from the Fed.
Wall Street witnessed a record-breaking week, primarily driven by the latest consumer inflation data. The positive sentiment pushed the benchmark S&P 500 above the 5,300-point level for the first time ever.
The S&P 500 and Treasuries notched their first in-tandem weekly gain in a month, buoyed by constructive pronouncements from Federal Reserve Chair Jerome Powell and softer employment data. Please find enclosed our weekly newsletter.
