To The Moon

Yesterdday's attention was drawn to the latest inflation data and remarks from Federal Reserve officials, setting the stage for the upcoming earnings season, which kicks off with major U.S. banks reporting their first-quarter results.

Inflation Insights

• Producer Price Index (PPI): The March PPI came in lower than expected, rising by 0.2% from February, against economists' forecasts of a 0.3% increase. While the PPI remains 2.1% higher than a year earlier, recent months have shown more subdued inflation at the wholesale level compared to consumer price indexes.

Inflation

• Federal Reserve's Concern: Comments from regional reserve bank presidents, including New York's John Williams, Richmond's Thomas Barkin, and Boston's Susan Collins, acknowledged the recent hotter-than-expected inflation data. These remarks tempered expectations for near-term interest rate cuts by the Fed.

• European Central Bank (ECB): The ECB held interest rates unchanged, indicating a more contained inflation and growth environment compared to the U.S. The ECB is expected to cut rates at its next meeting in June.

Market Performance

• Stocks Rebound: Following yesterday's declines, stocks regained momentum today, with the $NASDAQ(.IXIC)$ surging 1.7% to a record high. The $S&P 500(.SPX)$ added 0.7%, while the Dow Jones Industrial Average finished flat. Technology stocks led the gains.

• $NVIDIA Corp(NVDA)$ $Apple(AAPL)$ 

  $Tesla Motors(TSLA)$

Stocks

Focus on Earnings Season:

• Bank Earnings: Today marks the start of first-quarter earnings season, with major banks such as $JPMorgan Chase(JPM)$ , Citigroup, and Wells Fargo set to report. Investors are particularly interested in guidance regarding net interest income, a key measure reflecting banks' revenue from interest-bearing assets.

Earnings

• Interest Rate Environment: The backdrop of higher-for-longer interest rates is expected to benefit lending profits, but attention will be on banks' outlooks amid shifting rate expectations and economic conditions.

Conclusion

As investors digest the latest inflation data and anticipate earnings reports from major banks, market sentiment remains cautious amid uncertainties surrounding interest rates and economic growth trajectories.

The divergent paths of central banks, particularly between the ECB and the Fed, underscore the complex global economic landscape. In the coming days, market participants will closely monitor earnings releases for insights into corporate performance and the broader economic outlook.

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.

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@TigerStars @TigerPM @CaptainTiger @Tiger_SG