To The Moon

Wall Street halts trading as market digests record high; Nikkei hits new high on upbeat inflation data.

🇺🇸 S&P 500: -0.14% 📉

🇺🇸 Nasdaq: 0.16% 📈

🇪🇺 Stoxx 600 Index: -0.03% 📉

🇯🇵 Nikkei 225 Index: 0.18% 📈

🇭🇰 Hang Seng Index: -2.16% 📉

🇨🇳 CSI 300 Index: -1.01% 📉

• U.S. stocks were mixed, with the S&P 500 down -0.1% and the Nasdaq Composite inching up 0.2%, as the Federal Reserve reiterated its stance that it expects to cut interest rates three times before the end of the year, in line with market expectations.

• Asia-Pacific stocks were mixed, with Hong Kong's Hang Seng down -2.2%, its biggest drop in two weeks, as pessimism intensified after disappointing earnings from bellwether companies and the yuan breached the key 7.2 support level against the dollar. The move is seen as providing support to exporters. The Nikkei 225 briefly rose 0.18%, breaking through the 41,000 mark and hitting a record high, as inflation accelerated in February.

• Japan's core inflation rate accelerated for the first time in four months at 2.8% in February, up from 2.2% in February, as the effect of government subsidies to curb energy costs faded, adding to inflationary pressures. Core CPI, which excludes energy and fresh food, rose 3.2%.

Things to know today:

1. Fed Bostic revised his forecast to expect only one rate cut this year, blaming the change on persistent inflation and stronger-than-expected economic data after previously suggesting rate cuts could begin this summer. .

FED Bostic

2. The number of oil and gas rigs decreased by 5 rigs to 624, down -18% from last year and reaching the lowest level since mid-January 2022. According to EIA data, the number of rigs drilled in major shale basins is expected to increase due to lower spending and drilling activity. Natural gas production is set to fall to its lowest level in three months after natural gas futures prices fell in February.

Rigs

3. Social media platform $Reddit(RDDT)$  jumped 48% in its initial public offering to close at $50.44, a sign that investor interest in IPOs of promising but loss-making companies may be reviving. The company earlier struck a data licensing deal with Google worth about $60 million a year. 

4. Nike beat profit expectations with earnings per share of $0.77, driven by cost-cutting measures, but revenue is expected to decline by low single digits in the first half of fiscal 2025 as the company scales back its franchises. Part of a $2 billion savings plan to optimize supply chains and cut underperforming products.

Nike

5. Evergrande liquidators announced that the company, SJ and Tianji had filed documents with the U.S. court on Friday to withdraw their Chapter 15 bankruptcy protection application and stated that they would file a new one if they deem it necessary and appropriate. Apply.

✅ KEY TAKEAWAYS:

Profit-taking on Friday limited gains in Wall Street indexes, a day after they hit record highs, while an unexpected rate cut in Switzerland solidified the view that, with the exception of the Bank of Japan, developed world central banks will soon ease interest rates. I remain bullish for the major index due to expectation of interest rate cut this year $Nasdaq100 Bull 3X ETF(TQQQ)$  $S&P 500(.SPX)$  $Semiconductor Bull 3X Shares(SOXL)$ $SPDR S&P 500 ETF Trust(SPY)$  $Nasdaq100 Bear 3X ETF(SQQQ)$  

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