Wall Street breaks records as traders bet on rate cuts!
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Last week, the three major U.S. indexes set fresh record highs on the back of inflation data that pointed to signs of a cooling economy.?
On the week, the S&P ?? ?and tech-heavy Nasdaq jumped 1.54% and 2.11% to 5,303.27 and 16,685.97, respectively. Both indices hit record highs on Wednesday. The Dow climbed 1.24% on the week to close at 40,003.59, topping 40,000 for the first time on Thursday. This year, the Dow has advanced 6% while the S&P and Nasdaq have gained 11%.
Thursday saw the release of a softer-than-expected consumer price report. The consumer price index (CPI) rose 0.3% in April, compared to a 0.4% growth in March and February. The report had traders more optimistic about the chances of a September and December rate cut by the Federal Reserve. U.S. retail sales also came in flat last month. “It’s a relief we didn’t have a fourth hot CPI report,” Carol Schleif, chief investment officer at BMO told Reuters. “Clearly markets liked that the inflation numbers looked softer. Retail sales came in softer. It’s pretty clear evidence that the economy came off the boil and is operating more sustainably,” she added.?
Analysts say that the recent stock market rally could still continue. “This has all the signs of a cyclical bull market, and it’s not running out of steam as far as we can tell,” Ross Mayfield, a Baird analyst, told CNBC. “Once you find the low, the market typically has further to go than what we’ve seen so far,” Keith Lerner, co-chief investment officer at Truist Advisory Services, told Reuters.?
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WTI and Brent crude jumped 2.3% and 1.43% to $80.06 and $83.98 a barrel, respectively. Gold gained 1.78% to $2,417.40 an ounce.?
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