In low volume, stock markets rallied on Wednesday, with the $DJIA(.DJI)$ Average posting its strongest performance of the year and the S&P 500 achieving its 21st record close of 2024.
Despite lingering concerns about inflation, investors remain optimistic about the economy's resilience and consumer strength. Federal Reserve Governor Christopher Waller emphasized that there is no urgency to lower interest rates, citing recent economic data as a reason to delay rate cuts.
Meanwhile, Japanese officials are considering measures to address the yen's decline against the dollar, which hit a 34-year low.
The downside is that this increase is being achieved in low volume and with a distorted market… $NVIDIA Corp(NVDA)$ $Apple(AAPL)$ $Microsoft(MSFT)$
Volume
Key Points
Market Performance: The Dow Jones Industrial Average surged 478 points, or 1.2%, marking its second-highest level in history. The $S&P 500(.SPX)$ closed at an all-time high, up 0.9%, while the $NASDAQ(.IXIC)$ gained 0.5%. The broad-based rally was observed across all sectors of the S&P 500. But with low volume...
First Quarter Outlook: With the first quarter coming to a close, the S&P 500 is on track to finish up 10%, its best opening quarter since 2019. Despite concerns about inflation, investors are more focused on the strength of the economy and corporate profits.
Fed's Stance on Interest Rates: Federal Reserve Governor Christopher Waller indicated that there is no rush to lower interest rates, citing recent inflation data as "disappointing." He emphasized the need for sustained improvement in inflation figures before considering rate cuts.
Yen's Decline: Nomura Holdings Inc. expects the yen to strengthen against the dollar later this year, driven by potential further easing by the Federal Reserve and tighter policies in Japan. Japanese officials are considering intervention as the yen approaches 152 yen to the dollar, its lowest level in 34 years.
JPYUSD
US-China Relations: Chinese leader Xi Jinping met with American business leaders to discuss economic reforms and opening up the business environment. However, US Treasury Secretary Janet Yellen criticized China's heavy subsidies for domestic industries, expressing concerns about its global dominance ambitions.
China Manufacturing
Conclusion
The market's positive momentum continues despite inflation concerns, with investors focusing on economic resilience and corporate performance. However, uncertainties remain regarding the Fed's interest rate decisions and geopolitical tensions between major economies like the US and China…
This summary is for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult with a financial advisor before making investment decisions. Trading in financial markets involves risks, and past performance is not indicative of future results.
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