Pre-Market Pulse 8th April – Equities Rally despite strong payrolls pushing back cuts
Equities rallied Friday night despite very strong US employment numbers put any form of rate cuts this year into question.
Equities rallied Friday night despite very strong US employment numbers put any form of rate cuts this year into question.
Investors remained deluded that rate cuts hopes and a strong economic numbers can co-exist as equities had a relief rally due to Fed chair Powell saying rate cuts remain on the table for this year.
Investors remained deluded that rate cuts hopes and a strong economic numbers can co-exist as equities had a relief rally due to Fed chair Powell saying rate cuts remain on the table for this year.
Equities had a broad-based sell-off overnight extending the poor start to the second-quarter, pressured by health care stocks and another big jump in Treasury yields amid remarks from several Federal Reserve officials reiterating the need to keep rates higher for longer.
Equities ground higher before the long weekend as PCE data came in higher than expected, Powell said the inflation number was “as expected” and Chinese Manufacturing data expanded for the first time in 6 months
The S&P 500 clinched a fresh record closing high Wednesday, as Treasury yields slipped ahead of a speech from Federal Reserve governor Christopher Waller due later in the day and more cues on inflation.
Equities again drifted lower as investors digested data showing U.S. consumer confidence fell to the lowest level since November, just ahead of further remarks from Federal Reserve speakers and key inflation report later this week.
Equities closed lower Monday as big tech took breather ahead of key market-moving events this week including an update on inflation and remarks from Federal Reserve officials.
Equities edged higher but profit-taking capped gains on Friday after a week of record-setting advances fueled by a series of dovish central bank signals, while the dollar struggled to extend a gain as U.S. yields ticked lower.
Equities edged higher overnight as risk appetite has been boosted by the prospect of lower interest rates and a resilient U.S. economy, or the “goldilocks scenario” after Fed officials maintained their forecasts for three rate cuts this year.
Equities bull run continued as investors sifted through last nights Fed meeting to find the positives, ignoring the higher growth and inflation expectation that are likely to push back the timing of rate cuts
Equities finished higher with megacap growth stocks such as Alphabet and Tesla supporting a rebound in technology-heavy Nasdaq while investors also waited anxiously for the U.S. Federal Reserve’s meeting this week.