Yesterday's Session
Yesterday’s trading session showcased significant resilience in the face of looming economic uncertainties. The $S&P 500(.SPX)$ and $NASDAQ(.IXIC)$ each managed to power through early declines to achieve record closing highs, with the S&P 500 rising 0.3% and the Nasdaq Composite increasing by 0.9%. This marked the S&P 500’s 27th record close of the year and the Nasdaq’s 15th. Despite these gains, only 182 stocks in the S&P 500 advanced, highlighting the concentrated nature of the rally. $NVIDIA Corp(NVDA)$
$Apple(AAPL)$ stock surged by 7.3%, closing at a record $207.15, driven by investor enthusiasm for the company’s AI-related announcements at the Worldwide Developers Conference. Analysts reacted positively to Apple’s unveiling of "Apple Intelligence" features, which require the latest iPhone models, potentially spurring a significant upgrade cycle.
$AAPL
In the bond market, a 10-year Treasury note auction garnered strong demand, with an interest rate of 4.438%, nearly 2 basis points lower than expected. This surprising demand, particularly from indirect bidders like foreign entities, drove bond yields down ahead of today’s critical CPI report and the Federal Reserve’s policy decision.
Key Economic Events
Today is pivotal, with traders bracing for the release of US inflation data and the Federal Reserve’s interest rate decision.
FOMC
The Consumer Price Index (CPI) data for May, will provide crucial insights into inflation trends. This data will heavily influence the Fed’s decisions.
In Europe, traders will be focusing on UK industrial production and trade balance data, as well as Germany’s final inflation readings. Additionally, the IEA’s Oil Market Report for June and speeches from ECB officials
Meanwhile, geopolitical tensions continue to influence markets. The Biden administration is considering further restrictions on China’s access to AI chip technology, aiming to limit the advancement of China’s military capabilities.
Market Scenario
The market scenario today is dominated by anticipation of the US inflation data and the Fed’s rate decision. Investors are currently pricing in a single rate cut for this year, but the updated dot plot from the Fed could cause significant market volatility. With the Fed widely expected to hold rates steady for a seventh consecutive meeting, Treasuries have steadied, European equity futures are slightly higher, and the euro remains unchanged.
Apple’s stock surge on AI optimism sets a positive tone for the tech sector, while $Oracle(ORCL)$ strong performance following better-than-expected bookings and new partnerships adds to the bullish sentiment in tech stocks.
Conclusion
Today's events are set to significantly shape market directions, with critical US inflation data and the Federal Reserve’s policy decision at the forefront. Investors should stay alert to potential market volatility as new economic insights emerge…
The information contained in this summary is based on data available at the time of writing and is subject to change. The opinions expressed do not constitute financial advice, and investors should conduct their own research before making investment decisions.
Thanks for reading, supporting. You’re welcome.
Comments