" Interest Rate Expectations and Corporate Earnings"

DoTrading
04-17

Yesterday saw a continuation of the reevaluation of interest-rate expectations for 2024, driven by comments from Federal Reserve officials and market reactions to economic data. Here's a breakdown of the key events and market movements:

DJIA: +0.17% to 37,798.97 ; $S&P 500(.SPX)$ : -0.21% to 5,051.41 ; $NASDAQ(.IXIC)$ : -0.12% to 15,865.25

$Tesla Motors(TSLA)$ $Apple(AAPL)$ $NVIDIA Corp(NVDA)$

Stocks

Interest Rate Expectations

  • Fed Remarks: Fed Chairman Jerome Powell emphasized the need for greater confidence in sustained inflation decline before considering rate cuts. This sentiment was echoed by other policymakers like Fed Vice Chair Phillip Jefferson and Richmond Fed President Thomas Barkin. As a result, the futures market is pricing in practically no chance of rate changes at the next two Fed meetings, with reduced expectations for cuts in July.

Powell

  • Market Response: Bond yields rose for the sixth time in eight sessions, with the 10-year Treasury note yield reaching 4.66%. Yield-sensitive sectors like real estate and utilities experienced declines, while the overall S&P 500 closed down 0.2%.

Corporate Earnings

  • Highlights: Several major companies reported earnings, including UnitedHealth Group, Bank of America, United Airlines Holdings, $Morgan Stanley(MS)$ , Johnson & Johnson, and others.

  • Upcoming Reports: Companies like Abbott Laboratories, ASML Holding, Citizens Financial Group, Crown Castle, CSX, Discover Financial Services, Equifax, Kinder Morgan, Las Vegas Sands, Prologis, Travelers, and U.S. Bancorp are set to announce quarterly results.

Geopolitical Developments

  • Bank of England's Outlook: Governor Bailey hinted at the possibility of interest rate cuts in the UK, contrasting with the Federal Reserve's stance. This divergence could widen the gap between UK and US yields.

  • Middle East Tensions: Crude oil prices eased as tensions in the Middle East appeared to subside, with the US imposing new sanctions on Iran and China's exports to Russia declining amid US threats of war sanctions.

Oil

Conclusion

Investors are closely monitoring central bank policies, economic data, and corporate earnings for insights into market direction. With interest rate expectations evolving and geopolitical tensions impacting oil prices, market sentiment remains cautious as investors navigate uncertain terrain.

The information provided in this recap is for informational purposes only and should not be construed as financial advice. Investing in the stock market involves inherent risks, and individuals should conduct thorough research and seek professional guidance before making investment decisions. The author does not guarantee the accuracy or completeness of the information provided, and any reliance on this information is at the reader's own risk.

Thanks for reading, support. You’re welcome. [ShakeHands][Salute]

@TigerStars @TigerPM @CaptainTiger @Tiger_SG

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Federal Reserve Chair Jerome Powell said firm inflation during the first quarter had introduced new uncertainty over when and whether the central bank would be able to lower interest rates later this year. ------------------ Will S&P 500 drop below 5000? Is a short term correction or the end of bull market?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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