Stocks ended the week on a high, boosted by a favorable inflation report and strong economic growth data. Tech stocks saw mixed results as Nvidia faced some setbacks, while Micron and Intel rose on positive earnings and funding news. Beijing introduced a plethora of measures to stimulate its economy, lifting mainland stocks. Oil prices dropped […]
Following a 50 basis point rate cut, the S&P 500 hit record highs, and Gold rallied to all-time highs. At current levels, the index’s valuation of 21 times forward earnings is significantly higher than the long-term average. However, near-term momentum is bullish for markets
The Federal Reserve has shifted its focus from solely addressing inflation to balancing inflation control with supporting employment. Inflation, as measured by the personal consumption expenditures (PCE) price index, held steady in July at 2.5%, while the core gauge was 2.6%. Fed Chair Jerome Powell indicated that inflation has been largely tamed through high interest […]
Stocks surged despite higher than expected inflation data, driven in part by Nvidia’s 16% rise due to strong AI chip demand. Markets are split on whether the Federal Reserve will cut rates by 25 or 50 basis points. Meanwhile, gold hit a historic high of $2,600/oz. The ECB also cut interest rates for the second […]
US stocks concluded a volatile month in a positive mood, buoyed by core PCE data suggesting potential interest rate cuts in September and beyond. Retailers announced weak sales guidance for the year as they continue to see a shift in spending from discretionary items to essentials. Nvidia’s shares initially dropped over 8% despite strong earnings […]
The Federal Reserve is expected to cut interest rates next month after more than two years of hikes aimed at controlling pandemic-driven inflation. The market reaction has been extremely bullish, with the S&P 500 adding over $4.5 trillion in market cap in three weeks, while Treasury yields fell and gold reached all-time highs. Attention is […]
US stocks experienced their best week since November 2023, rebounding sharply from a previous sell-off. Investors have taken heart from recent positive economic data and rushed back into markets. The tone is likely to remain bullish with bouts of occasional volatility.
The hike in interest rates by the Bank of Japan led to a sharp correction in USDJPY and an unwinding of the ‘carry’ trade. While this was expected, the effect was magnified by the release of softer than expected employment data in the US, which led to some panic selling. We believe some further volatility […]
Regular readers of our newsletter know that over the last several months we have repeatedly highlighted the fragility in the US economy, especially the contradictions between the official numbers and data gathered from other ‘real world’ sources. Accordingly, we have urged investors to be cautious about chasing high-flying names and instead focus on high-quality fixed […]
Both the S&P 500 and Nasdaq ended the week lower, with the Nasdaq facing significant declines. Earnings reports are highlighting concerns about overhyped AI investments and potential slowdowns in consumer spending. Alphabet’s results intensified doubts about AI returns, while Southwest Airlines, UPS, and Whirlpool raised fears about consumer pullback. The US economy grew at an […]
