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Post by kostiaforexmart on Mar 18, 2024 14:40:06 GMT -5
Wall Street's decline driven by tech sector and Fed rates
The global stock index also showed a decrease on Friday, setting a course for a weekly decline after seven consecutive weeks of gains, while the dollar strengthened, heading for its most significant weekly gain since mid-January as the latest US inflation data fueled new hopes for interest rate cuts.
Data released on Friday showed a slight increase in US import prices in February, as the rise in the cost of petroleum products was partially offset by modest growth in other areas, suggesting an improvement in the inflationary landscape.
Stocks this week faced challenges after US consumer and producer price data indicated that inflation remains persistent, dampening expectations that the Federal Reserve would cut rates by its June meeting.
Market assessments of a Fed rate cut of at least 25 basis points in June stand at 59.2%, down from 59.5% in the previous session and 73.3% a week ago, according to CME's FedWatch Tool.
The central bank is expected to maintain interest rates at its meeting next week, but investors will closely monitor the central bank's economic forecasts, including interest rate projections.
On Wall Street, the Dow Jones Industrial Average (.DJI) fell by 190.89 points, or 0.49%, to 38,714.77, the S&P 500 (.SPX) lost 33.53 points, or 0.65%, to 5,116.95, and the Nasdaq Composite (.IXIC) dropped 155.35 points, or 0.96%, to 15,973.17.
Over the week, the S&P 500 lost 0.13%, the Dow dropped 0.02%, and the Nasdaq decreased by 0.73%.
Additionally, a study by the University of Michigan showed its preliminary consumer sentiment and inflation expectations data barely changed in March, while a separate report indicated that US factory production in February increased more than expected.
Adobe (ADBE.O) shares fell by 13.7% the day after the company forecasted second-quarter revenue below analysts' estimates, citing competition and weak demand for photos, illustrations, and videos integrated with artificial intelligence.
Among other declining stocks, Ulta Beauty (ULTA.O) shares fell by 5.2% after its projected annual profit came in below Wall Street estimates, as rising supply chain costs and intensified promotional activities negatively impacted its profits.
The S&P 500 technology index (.SPLRCT) dropped by 1.3% for the day, leading the downturn among sectors. Shares of Microsoft (MSFT.O) fell by 2.1%, marking one of the index's most significant declines.
The semiconductor index (.SOX) decreased by 0.5% on Friday, registering its most significant weekly percentage drop since the beginning of January. Announcements related to AI at Nvidia's (NVDA.O) GTC developers conference, scheduled for March 18-21, will be closely watched.
The Russell 2000 index of small-cap companies (.RUT) fell by 2.1% for the week.
Friday's volume was the highest of the year on US exchanges, with 18.76 billion shares traded. The average full-session volume over the last 20 trading days was about 12.4 billion.
Although Wall Street's AI-driven growth has stalled, the S&P 500 index has continued to rise by 7.3% since the beginning of the year.
According to data released on Friday, US factory production in February grew more than expected, but the January figure was sharply revised downwards, as production continues to be constrained by higher interest rates.
The dollar index gained 0.05% to 103.43, recovering some of the previous week's decline with a 0.71% increase, while the euro rose 0.06% to $1.0889 for the session. The sterling weakened by 0.13% to $1.273.
Against the Japanese yen, the dollar strengthened by 0.49% to 149.05, despite expectations that the Bank of Japan is expected to end its negative interest rate policy at its meeting next week.
The MSCI global stock index (.MIWD00000PUS) fell by 5.07 points, or 0.66%, to 767.58, heading for its third consecutive daily drop, the longest streak since the beginning of the year, and a 0.48% decrease for the week.
The STOXX 600 index (.STOXX) closed down by 0.32%, while the broader European index FTSEurofirst 300 (.FTEU3) fell by 7.42 points, or 0.37%.
The yield on benchmark 10-year US Treasury bonds rose by 1 basis point to 4.308% after reaching 4.322%, the highest level since February 23. The yield on 10-year bonds this week jumped by 22 b.p., the most significant increase since mid-October.
The yield on 2-year Treasury bonds, which typically moves in step with interest rate expectations, rose by 3.9 basis points to 4.7297% and increased by 24.6 b.p. for the week, marking the biggest jump in two months.
Oil prices fell a day after exceeding the $85 per barrel mark for the first time since November. Oil indices finished the week with a growth of more than 3%. U.S. crude oil decreased by 0.27% to $81.04 per barrel, and Brent crude fell by 0.09% to $85.34 per barrel.
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Post by kostiaforexmart on Mar 26, 2024 10:15:52 GMT -5
The main events by the morning: March 26
Bitcoin has returned to the area above $71 thousand. A day earlier, investment guru Jim Roger said that the cryptocurrency would collapse to zero. He does not see any long-term value in it, believing that the crypt will disappear.
The United States has imposed sanctions against Russian operators of CFA and blockchain services. In the list: Atomize, Lighthouse, Distributed Registry Systems, Web3 Tech, B-Crypto, Netexchange, Masterchain.
The Cabinet of Ministers of Russia ordered the sale of 27.5% in the Sakhalin-2 operator company for 95 billion rubles. Gazprom's daughter Sakhalin Project will buy a share, TASS reports.
France may come into direct conflict with Russia in the event of the defeat of the Armed Forces of Ukraine. The LCI channel claims that there are several scenarios for the entry of French troops into the territory of Ukraine, including the deployment of NATO troops in fortified areas and trenches of the Armed Forces of Ukraine, as well as the possible construction of a military plant in Kiev or the deployment of troops in Odessa.
Hamas has confirmed its unwillingness to make concessions. According to Reuters, the Palestinian movement informed the mediators that it would insist on a complete ceasefire in the Gaza Strip, as well as demanding the complete withdrawal of the Israeli military from the region and a «real exchange» of prisoners of war.
The March package of assistance to Ukraine from the United States in the amount of $300 million was used back in November. According to Politico, a representative of the American administration said that these funds are currently «not available for use,» and the approval of assistance was rather a symbolic gesture.
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Post by kostiaforexmart on Mar 27, 2024 14:24:30 GMT -5
On the verge of inflation: how the Dow Jones and S&P reacted for the third session in a row
On Tuesday, amid expectations of important economic releases during the short holiday week, US stock markets fell, marking the third consecutive decline for the Dow Jones and Standard & Poor's 500 indexes. Investors are in a wait-and-see mood as they analyze potential changes in Federal Reserve policy.
Tesla (TSLA.O) rose 2.92% on CEO Elon Musk's announcement that he would test self-driving technology for the company's vehicles, available to both new and existing customers in the United States. Over the current week, the stock price has increased by about 4%, although during the year their quotes have decreased by more than 28%.
Market participants are particularly focused on the Personal Consumption Expenditures (PCE) price index, the Federal Reserve's main tool for assessing inflation. It is expected that the latest data on this indicator will be published on Friday, a day when trading on American exchanges will not be held due to the celebration of Good Friday.
It is predicted that in February the inflation index will increase by 0.4%, reaching 2.5% at the annual level. Meanwhile, core inflation, which excludes volatile items such as food and energy, is expected to rise 0.3% for the month, keeping annual growth at 2.8%, according to expert forecasts.
"Friday is key. All attention will be focused on this day, and any events before then will be perceived as background. Therefore, we should not expect significant changes in the market until the data is published," said Stephen Massocca, deputy president of Wedbush Securities. San Francisco.
"It would be extremely risky for the market if there were any speculation that Fed rates have not yet peaked. Any hint from the Fed that interest rates could be raised further could signal an immediate shift away from risk assets."
The U.S. economic sector is growing, with February orders for durable goods exceeding forecasts and equipment investment pointing to the start of a recovery. According to the Conference Board, consumer confidence remained virtually unchanged in March at 104.7.
The Dow Jones Industrial Average lost 31.31 points, down 0.08%, to 39,282.33. The S&P 500 was down 14.61 points (down 0.28%) at 5,203.58, while the Nasdaq Composite was down 68.77 points (down 0.42%) at 16. 315.70.
Last week, all three major US indexes hit new all-time highs after the Federal Reserve confirmed its forecasts for three interest rate cuts this year.
Market expectations for the Fed to cut rates by at least 25 basis points in June continue to rise, now reaching 70.4% probability according to CME's FedWatch tool, up markedly from last week's 59.2%.
Shares of the media and technology group linked to Donald Trump rose 16.1% to close at $57.99 after temporarily hitting $79.38 on the first day of trading following its reverse merger with the company. , specializing in the issue of securities.
McCormick (MKC.N) jumped 10.52% to become the top gainer in the S&P 500, as its first-quarter sales and earnings beat market expectations.
Shares of Seagate Technology (STX.O) also posted strong gains, rising 7.38%, after analysts at Morgan Stanley upgraded the hard drive maker's stock from overweight to overweight.
At the same time, United Parcel Service (UPS.N) shares lost 8.16% following the release of the company's 2026 guidance.
On the New York Stock Exchange, decliners outnumbered advancers by a 1.24-to-1 ratio. A similar trend was seen on the Nasdaq, where decliners outnumbered advancers by a 1.34-to-1 ratio.
Trading volume in US stock markets reached 10.43 billion shares, less than the average volume of 12.23 billion shares over the past 20 sessions. Trading activity is expected to remain moderate throughout the current week, and as the holidays approach, volumes may decline further.
The pan-European stock index STOXX 600 gained 0.24%, while MSCI's index of Asia-Pacific shares ex-Japan closed 0.25% higher at 535.59.
Market attention is focused on the Japanese yen, which remains at its weakest against the dollar since 1990 despite the Bank of Japan raising interest rates last week for the first time in 17 years.
The dollar strengthened 0.1% against the yen to hit 151.56, raising the risk of Japanese intervention to prevent further weakening of its currency. In October 2022, the dollar/yen exchange rate rose to 151.94, followed by a decline due to intervention.
Japanese Finance Minister Shunichi Suzuki on Tuesday expressed readiness to consider options to stabilize the yen, reiterating statements made the day before by the country's top monetary policy official.
The US dollar was marginally weaker, down 0.06% at 7.248 against the offshore Chinese yuan, which strengthened thanks to an unexpectedly high trading range setting. The yuan's fall the previous Friday, after a period of market volatility, had sparked concern among investors, with some speculation that China could loosen controls on its currency, allowing it to fall.
Spot gold rose 0.24% to $2,176.69 an ounce, while U.S. gold futures rose 0.09% to $2,176.80 an ounce. In the cryptocurrency space, Bitcoin lost 1.74% to $69,753.73, while Ethereum fell 1.55% to $3,572.7.
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Post by kostiaforexmart on Mar 29, 2024 9:18:25 GMT -5
S&P 500 breaks records: the most successful quarter in the last five years
Amid the latest economic data, the S&P 500 ended the week with positive dynamics, marking its best quarterly result in the last five years. Investors are optimistic about the future, awaiting new information on inflation.
Breakout of leading indices
In addition to the S&P 500, two other key US indices also posted significant gains this quarter. The 10.16% rise for the S&P 500 was driven by growing interest in artificial intelligence stocks and speculation that the Federal Reserve will cut interest rates this year.
Dow Jones on the verge of historic achievement
The Dow Jones index is approaching a significant milestone of 40,000 points, less than 1% away from this goal.
Economic progress and labor market sustainability
The latest data shows the US economy grew faster than expected in the fourth quarter, helped by strong consumer spending. Additionally, the decline in initial unemployment claims underscores the stability in the labor market.
Optimism among experts
"The economy and consumers are doing well as they continue to spend. Unemployment remains low and there are regions where the economy is thriving... There are funds that want to be spent in a variety of ways," shares George Young, portfolio manager at Villere & Company.
Nasdaq reaches new heights
The tech-heavy Nasdaq Composite Index also posted its first record peak since November 2021, opening up new opportunities for investors.
Belief in a "soft landing" of the economy
A key factor in this year's success has been investor confidence in the possibility of a "soft landing" for the economy, which involves lowering inflation without leading to a major recession.
Looking to the future: soft landing is a priority
A BofA Global Research survey conducted in March shows more than two-thirds of asset managers view a soft landing as the most likely scenario for the economy over the next 12 months, while just 11% expect a hard landing.
Fed maintains optimism
The March Federal Reserve meeting, which confirmed expectations of three interest rate cuts during the year while improving the economic outlook, added confidence to investors.
Overcoming rising bond yields
The stock has successfully weathered the rise in Treasury yields that previously weighed on stock prices heading into 2023. The yield on the 10-year Treasury note reached 4.2%, up from 3.86% at the end of last year.
Expanding the Boundaries of Optimism
BlackRock Investment Institute strategists say risk optimism could expand beyond the tech sector thanks to the integration of AI across industries, as well as support from the Federal Reserve and slowing inflation. This is pushing for more investment in US stocks.
Rising share prices reflect confidence
The forward price-to-earnings ratio for the S&P 500 reached 21, a two-year high and reflecting increased investor optimism in the stock market, according to LSEG Datastream.
Wind of change in the stock market
The stock market remains under the influence of large companies that dictated trends in 2023. However, the current year has brought diversity to growth dynamics, especially among the tech giants known as the "Magnificent Seven."
Artificial Intelligence Stars
Nvidia stands out, posting impressive growth of over 80% thanks to its role as a leader in AI chips. Meta Platforms is also showing notable success, increasing its value by 37% and paying dividends for the first time in February.
Tests for titans of technology
At the same time, not all major players are lucky. Apple faces an 11% loss as the company comes under pressure in China and from regulators. Tesla is also experiencing a 29% decline, driven by concerns about demand for electric vehicles.
Redistribution of influence
According to S&P Dow Jones Indices, the Magnificent Seven are responsible for 40% of the S&P 500's year-to-date gain, down significantly from last year, when they contributed more than 60%. This suggests the rally is expanding to other stocks, offsetting the current decline.
A look at inflation ahead of the holiday
Against the backdrop of the upcoming Good Friday celebration and the closure of US stock markets, analysts are eagerly awaiting the publication of the PCE index. The index, the Federal Reserve's preferred measure of inflation, will provide insight into the possible timing and extent of upcoming interest rate cuts.
Minor changes compared to expectations
The Dow Jones Industrial Average gained some ground, gaining 0.12%, while the S&P 500 also rose a modest 0.11%. In contrast, the Nasdaq Composite fell slightly by 0.12%, reflecting the market's mixed reaction to the current economic outlook.
Weekly and monthly achievements
Over the past week, the Dow Jones rose 0.84%, the S&P 500 rose 0.39%, and the Nasdaq rose 0.3%. March gains were notable, with the Dow Jones up 2.08%, the S&P 500 up 3.1% and the Nasdaq up 1.79%. This quarter was marked by significant gains for all three indexes: the Dow by 5.62%, the S&P 500 by 10.16%, and the Nasdaq by 9.11%.
Comment from the Fed confirms caution
Federal Reserve Chairman Christopher Waller noted that despite the disappointing inflation data, the Fed should show restraint in cutting short-term interest rates. However, he did not rule out the possibility of a rate cut later this year, emphasizing the readiness for further regulatory action in response to the economic situation.
Fed Interest Rate Forecasts
Market analysts assign a 64% chance that the Federal Reserve will cut interest rates by 25 basis points by June, based on an analysis of data from CME's FedWatch Tool.
Sectoral achievements and failures
Among key sectors, communications, energy and technology stood out as the best performers in the quarter, while the real estate sector faced losses. This distribution of indicators reflects the changing priorities and interests of investors in the market.
Expanding investment horizons
According to Anthony Saglimbene, chief market strategist at Ameriprise, the observed trends suggest that investors are starting to explore opportunities outside the dominance of big tech companies, anticipating lower interest rates later in the year.
Focus on the winners of the AI era
Investors are also cautiously optimistic about which companies stand to benefit most from the increased use of artificial intelligence, tailoring their investment strategies to upcoming technology trends.
AI boom attracts attention
Nvidia continues to lead the AI push, but excitement around the technology has also spread to other chipmakers such as Super Micro Computer and Arm Holdings. Astera Labs, another player in this arena, impressed the market by doubling its stock price from its initial public offering price in just a week.
Healthcare in Focus
Walgreens Boots shares rose sharply following its quarterly earnings report, where the company noted a 3.19% decline in the value of its investment in medical clinic operator VillageMD.
Strategic moves in retail
Home Depot shares fell slightly after announcing the largest acquisition in the company's history, the purchase of building materials supplier SRS Distribution for $18.25 billion. The move highlights the retailer's strategic efforts to expand its presence in the market.
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Post by kostiaforexmart on Apr 1, 2024 14:39:20 GMT -5
The main events by the morning: April 1Sales of Russian gas for rubles brought the country an income of 2.3 trillion rubles. According to Eurostat and the UN Comtrade platform, Hungary, Italy, Greece and Slovakia became the main buyers of gas from Russia under the new conditions. However, some importing countries (e.g. Germany and Austria) hid information about their purchases of Russian gas. China has expressed its readiness to hold a dialogue with Taiwan only if the latter recognizes the principle of «one China». This was stated by Chinese Ambassador to Russia Zhang Hanhui. He also noted that China highly appreciates Russia's support in the Taiwan issue. The problems between China and Taiwan began in 2016 after Taipei's refusal to recognize the 1992 Consensus. China has maintained its leadership in chip imports for 22 years. In 2023, the country acquired chips worth $350 billion. Hong Kong has remained the leader in chip exports for the past 10 years. The largest increase in purchases over the past year has been observed in Albania – almost 4.4 thousand times. Monetization will appear in Telegram. However, the new advertisements are not yet available in Russia, Ukraine, Palestine and Israel. Administrators will be able to receive 50% of the revenue from advertising in their channels. Payments will only be made in TON. The Central Bank of Russia stated that there is no better option for storing reserves than the Chinese yuan. The bank also noted the increasing role and liquidity of the Chinese currency at the international level in recent years. Last year, the yuan replaced the US dollar as the most traded currency in Russia. Microsoft and OpenAI plan to create a Stargate data center with an artificial intelligence supercomputer for $100 billion. Information about this appeared in the publication The Information with reference to three sources close to the project. More analytics on our website: bit.ly/3VobLUv
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Post by kostiaforexmart on Apr 11, 2024 8:02:45 GMT -5
Financial future on the horizon: US stocks rise ahead of consumer price news
On Tuesday, ahead of the release of key inflation data, the Nasdaq and S&P 500 indices showed moderate growth, despite a decline in the financial sector. This happened ahead of the reporting season for leading US banks, which begins on Friday.
The Nasdaq Composite, supported by strength in semiconductors, posted a notable gain, while the S&P 500 gained minimally. The Dow Jones Industrial Average closed almost unchanged.
Investors were focused on Wednesday's consumer price index, which could have a significant impact on the Federal Reserve's interest rate adjustment decisions in light of recent positive economic data, including an impressive labor market report.
Among the large banks whose reports interested the market were JPMorgan Chase & Co, Wells Fargo & Co and Citigroup Inc, which are included in the S&P banking index and showed a decline in their activity in recent trading.
"Financial companies' first-quarter earnings typically set the pace for the entire season," said Bill Northey, who serves as senior director of investments at U.S. Bank Wealth Management in Billings, Montana. "We see cyclical sectors as a measure of the overall health of the corporate landscape in the United States."
Analysts predict that inflation will gradually decline toward the Federal Reserve's target level of 2%. However, the National Federation of Independent Business on Tuesday reported optimism among small businesses fell to an 11-year low in March, with inflation as the top concern.
"The decline in small business sentiment is a key signal," Green emphasized. "This is a repeat of the trend of recent years, where large companies feel confident, while small businesses experience significant difficulties."
The Dow Jones Industrial Average fell 9.13 points, or 0.02%, to close at 38883.67. The S&P 500 rose 7.52 points, or 0.14%, to finish at 5209.91, while the Nasdaq Composite rose 52.68 points, or 0.32%, to close at 16306.64.
Of the 11 key sectors in the S&P 500, nine posted gains, with real estate posting the biggest gains. The financial services sector showed the least dynamics.
According to the latest forecasts from LSEG, overall first-quarter earnings growth for S&P 500 companies is expected to reach 5% year over year, down from initial expectations of 7.2% at the start of the quarter.
Stocks related to cryptocurrencies and blockchain technology fell, reflecting the decline in the value of Bitcoin. In particular, shares of Coinbase Global and software developer MicroStrategy lost 5.5% and 4.8%, respectively.
Moderna stock stood out, however, rising 6.2% after announcing positive results from an early-stage trial of a customized cancer vaccine developed with Merck.
Alphabet Inc shares also rose 1.1%, moving the company closer to the significant milestone of a $2 trillion market capitalization.
On the New York Stock Exchange, advancers outnumbered decliners by a 1.44-to-1 ratio. On the Nasdaq, advancers outnumbered decliners by a 1.33-to-1 ratio.
Oil prices fell for the second day in a row as negotiations to reach a truce in Gaza continue, encountering obstacles from Egyptian and Qatari mediators. On Monday, Brent oil prices fell for the first time in the last five trading sessions, while the price of American oil fell for the first time in the last seven days.
The US dollar is showing stability amid investors' anticipation of the upcoming US inflation data expected on Wednesday. Meanwhile, the Japanese yen remains near its multi-year lows, prompting vigilance among traders about possible moves by Japan to stabilize the currency.
Those expectations bode well for the big banks' first quarterly earnings reports on Friday.
"We are on the verge of important inflation data and financial reports. Some investors may choose to adopt a more conservative strategy ahead of these key events," said Jeff Kleintop, chief global investment strategist at Schwab.
"Despite the stock market's strong first quarter performance, the question remains whether earnings were strong enough to support this development, and whether guidance from business leaders will be able to confirm the more confident growth expectations that the market has already priced in?"
At the beginning of the trading day, the shares showed growth, but then the dynamics weakened, and by the close of trading, some of them were able to partially recover lost positions.
Gene Goldman, chief investment officer at Cetera Investment Management, said: "With current high valuations and questions about the Federal Reserve's rate plans, markets are reflecting the situation with perfect accuracy. Any higher-than-expected CPI reading could make it difficult to be optimistic about a Fed rate cut."
The MSCI global equity index rose 1.32 points, or 0.17%, to 779.36, recovering from an earlier decline of about 0.5%.
Europe's STOXX 600 index fell 0.61% as investors awaited a policy statement from the European Central Bank on Thursday, paying particular attention to any comments from President Christine Lagarde about a possible rate cut in June.
US Treasury yields fell in anticipation of the release of US inflation data.
Expectations for a rate cut in the US have weakened amid continued economic activity. Markets place the likelihood of a 25 basis point rate cut in June at about 56%, down from 61.5% last week, according to analysis from CME Group's FedWatch tool.
The 10-year U.S. Treasury yield fell 6.6 basis points to 4.358%, down from 4.424% at the end of the previous day, while the 30-year yield fell 5.7 basis points to 4.4964%. with 4.553%.
The yield on two-year U.S. Treasury notes, which often reacts to changes in interest rate expectations, eased 5.1 basis points, falling to 4.7384% from 4.789% late Monday.
The foreign exchange market was little changed, with the US dollar index down 0.02% at 104.09, while the euro weakened 0.01% at $1.0857. Against the Japanese yen, the dollar lost 0.03% to settle at 151.74.
Japanese Finance Minister Shunichi Suzuki stressed the country is open to all options to deal with the yen's excessive fluctuations, reiterating its readiness to act in response to the currency's recent sharp decline.
In energy, despite ongoing instability in the Middle East, the US Energy Information Administration (EIA) has adjusted upward its forecasts for US crude oil production for the current and next years, and also raised its forecasts for global and domestic oil prices .
US oil prices fell 1.39%, or $1.20, to $85.23 per barrel. At the same time, Brent crude oil prices fell 1.06%, or $0.96, to trade at $89.42 per barrel.
Analysts said the spot price of gold hit a new record for eight straight sessions, supported by strong buying by central banks and rising geopolitical instability.
The price of spot gold increased by 0.57%, reaching $2,352.23 per ounce. At the same time, gold futures in the US showed an increase of 0.84%, settling at $2,351.40 per ounce.
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Post by kostiaforexmart on Apr 12, 2024 7:48:27 GMT -5
CRASH ON WALL STREET: INFLATION VS. RATE CUTOn Wednesday, American stock markets experienced a decline, reaching minimum closing levels against the backdrop of published inflation data, which exceeded experts' expectations. The figures dampened investor optimism that the US Federal Reserve could begin cutting interest rates by the summer. The publication of the US Department of Labor's report on the consumer price index (CPI), which showed results worse than expected, caused an immediate negative reaction in the markets. Major US stock indexes fell sharply into the red as trading began, highlighting the difficulty of getting inflation back to the Fed's 2% target. Ryan Detrick, lead market analyst at Carson Group, noted that the surprise inflation data led to a "sell first, ask questions later" strategy. This in turn cast doubt not only on the timing of the first rate cut, but also on the size of the upcoming cut. Concerns outlined in the minutes of the Fed's March meeting indicate a possible stagnation of inflation towards the target level, which may require the extension of tight monetary policy beyond the expected period. U.S. Treasury yields jumped while stock indexes felt pressured to decline after reporting higher-than-expected growth in consumer prices in March. This event reduced confidence in how quickly and to what extent the Federal Reserve could cut interest rates. In the foreign exchange market, the US dollar index strengthened in response to the release of data, and the dollar against the Japanese yen reached its highest level since 1990. Investors are closely monitoring the possible reaction of the Japanese authorities, who may take steps to stabilize the yen. A report from the U.S. Bureau of Labor Statistics recorded a 0.4% rise in the consumer price index last month, mirroring February's trend, due in large part to increases in gasoline and housing costs. This resulted in an annual growth index of 3.5%, compared with economists' forecasts for 0.3% monthly growth and 3.4% annual growth. These indicators significantly changed the mood of traders, significantly reducing expectations for the Federal Reserve to cut interest rates in June from 62% to 17%. In addition, the likelihood of a July rate cut was also revised down from 76% to 41%, according to data from CME Group's FedWatch tool. Michael Hans, chief investment officer at Citizens Private Wealth, emphasizes that the current environment remains uncertain and challenging for the Federal Reserve, which has yet to declare victory over inflation. "The Fed would prefer to rely on additional data to support its confidence in achieving its 2% inflation target," he says. He said the current situation requires a continuation of a cautious strategy, especially as recent data has prompted a revision of expectations regarding the timing of a potential interest rate cut. Elevated yields on major US government bonds, which topped the 4.5% threshold and reached their highest since last November, put further pressure on stock prices. Sectors most sensitive to changes in interest rates were particularly affected, with the real estate market recording its largest daily decline since June 2022. Housing stocks posted their biggest daily decline since Jan. 23, while the small-cap Russell 2000 index posted its biggest daily decline since Feb. 13. Ryan Detrick noted that "the sectors most exposed to interest rates, including real estate, homebuilding and small-cap companies, experienced significant losses today." The likelihood of the Fed cutting interest rates by 25 basis points in June fell to 16.5% from 56% just before the report, according to CME Group's FedWatch tool. The Dow Jones Industrial Average lost 422.16 points, down 1.09%, to 38,461.51. The S&P 500 fell 49.27 points (down 0.95%) to 5,160.64 and the Nasdaq composite fell 136.28 points (down 0.84%) to 16,170.36. Among the eleven key sectors of the S&P 500 index, all but energy ended the trading day in the red, with real estate posting the biggest decline. Investors' eyes are now on Thursday's upcoming producer price report, which will provide a clearer picture of inflation in March, as well as the unofficial start of quarterly earnings season. A new round of reporting begins on Friday when financial giants such as JPMorgan Chase & Co, Citigroup Inc, and Wells Fargo & Co report their financial results. Analysts expect overall first-quarter S&P 500 earnings to rise 5.0% year-over-year, a notable decline from the 7.2% growth forecast at the start of January, according to LSEG. Megacorporations in the growth sector were mostly down, but Nvidia Inc was the exception, rising 2.0%. US shares of Alibaba also saw a 2.2% gain after Jack Ma, the company's co-founder, addressed a memo to employees in which he supported plans to restructure the Internet giant. It's a rare message from a businessman who has stayed out of the public eye in recent years. On the New York Stock Exchange (NYSE), decliners far outnumbered advancers by a ratio of 5.93 to 1. A similar trend was seen on the Nasdaq, where for every gainer, 3.58 falling stocks. MSCI's global equity index fell 6.91 points, or 0.89%, to 772.32. While Europe's STOXX 600 index ended modestly up 0.15%, investors' eyes are on the upcoming European Central Bank meeting on Thursday. Forecasts say the bank is likely to keep its current interest rate unchanged, despite earlier hints of a possible rate cut in June. In the government bond sector, the 10-year US Treasury yield surged above 10 basis points to reach its highest since mid-November following the inflation data. The 10-year U.S. Treasury yield jumped 18 basis points to 4.546% and the 30-year Treasury yield jumped 12.8 basis points to 4.6273%. The 2-year yield, closely linked to interest rate expectations, rose 22.2 basis points to 4.9688%, hitting its highest since mid-November. In the foreign exchange market, the US dollar strengthened its position, rising 1.04% to 105.17, while the euro fell 1.04% to $1.0742. Against the Japanese yen, the US dollar rose 0.77% to 152.94. Oil prices also saw gains, with U.S. crude rising 1.15%, or 98 cents, to $86.21 a barrel, while Brent rose 1.19%, or $1.06, to $90. .48 dollars per barrel. Gold lost value as the dollar strengthened and Treasury yields rose following an update on inflation data. The spot gold price fell 0.91% to $2,331.12 an ounce, while U.S. gold futures fell 0.58% to $2,329.90 an ounce. More analytics on our website: bit.ly/3VobLUv
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Post by kostiaforexmart on Apr 16, 2024 10:49:55 GMT -5
Trading Signals for GOLD (XAU/USD) for April 16-18, 2024: sell below $2,390 (21 SMA - 61.8% Fibonacci)
Yesterday during the American session, gold reached a low of 2,325, the level that coincided with the 200 EMA and from that area, it gained a strong bullish momentum, jumping by more than $50 in less than 24 hours.
From the all-time high at 2,431 to the April 15 low (2,324), gold has retraced the 61.8% Fibonacci which coincides around 2,390.
If gold trades below 2,392 in the next few hours, we could look for opportunities to sell with the target at 2,364 (21 SMA). With a consolidation below the 21 SMA, we could expect a further bearish move and gold could fall to the 200 EMA at 2,331.
In case gold continues to rise, the bearish outlook will be invalidated and we could look for opportunities to buy above the psychological level of 2,400. If this scenario occurs and gold consolidates above 2,396, the price is likely to reach 2,410 and could finally reach 2,435 (7/8 Murray).
Technically, the eagle indicator is giving a negative signal and there will likely be a technical correction in the next few hours, so we will look to sell below 2,392 with the target at 2,330.
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Post by kostiaforexmart on Apr 19, 2024 8:07:46 GMT -5
Hot forecast for EUR/USD on April 18, 2024
In the absence of economic reports or other news that could affect the market, investors finally paid attention to the dollar's overbought condition. So, there was nothing to prevent the local correction, which, by the way, is still far from over. The market imbalances, although reduced, have not disappeared altogether. And except for the data on unemployment claims in the United States, today's economic calendar is empty. And with the US dollar still overbought, these reports are not particularly important. Moreover, claims are expected to increase by 4,000, and that's incredibly small. So we can basically say that nothing will change. Such minor changes are not capable of influencing investor sentiment. In other words, the pair will likely correct higher on Thursday.
The EUR/USD pair has started a long-awaited corrective movement. The support level at 1.0600 played a role, which the quote recently approached.
The RSI has left the oversold zone on the 4-hour chart, and it has upwardly crossed the 50 moving average. This indicates an increase in the volume of long positions in the euro.
On the same time frame, two out of three of the Alligator's MAs are intertwined, corresponding to a sign of a slowdown in the downtrend cycle.
Outlook
Considering the extent of the euro's weakness, we can assume that there is still room for more movement. For this reason, the pair is expected to rise to the level of 1.0700.
Complex indicator analysis indicates a downward cycle in the short- and long-term timeframes.
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Post by kostiaforexmart on Apr 23, 2024 17:38:50 GMT -5
Gold edges lower as Middle East tensions ease
The yellow metal continues to decline, plunging investors into gloom and prompting them to reassess their trading strategies. However, some analysts are confident that the precious metal will rebound in the near future, viewing its decline as a natural step before another rally. The optimism of experts bolsters investors, although some market players remain skeptical about the near-term prospects of gold.
On Monday, April 22, the precious metal sharply fell amid reduced geopolitical risks and decreased demand for safe-haven assets. As a result, gold lost more than 2.7%. According to estimates, gold's decline at the end of the day was the most significant since June 2022.
The metal depreciated amid easing tensions in the Middle East. Such a development reduced the risk premium in the market. At the moment, gold continues to trade downwards after the sharpest decline in two years.
The catalyst for the current downtrend in the precious metal was the de-escalation of the conflict between Israel and Iran. Against this backdrop, many experts are pessimistic about the near-term prospects of gold. They believe that investors will turn to other sources of capital preservation. According to some specialists, prices for the precious metal may break below the $2,300 per ounce level and then plummet to $2,200 per ounce. Analysts recommend preparing for a significant decline in the yellow metal amid extremely overbought conditions, as indicated by the RSI on the daily chart.
Currency strategists at ABN AMRO Bank have maintained their forecast, according to which gold will lose heavy losses, diving to $2,000 per ounce by the end of 2024. The bank's specialists cite excessively high current prices, dollar strengthening, liquidation of assets in gold ETFs, and the absence of a physical gold shortage in the global market as reasons.
The current drop in the yellow metal (by more than 2.7%) is considered by experts to be the most significant in the last two years. Gold futures quotes on the New York Comex exchange plummeted to $2,346.4 per ounce at the end of Monday's trading, reaching the lowest level since April 5, 2024. On Tuesday, April 23, the precious metal declined by 0.85% and then fell by another 1.3%. Currently, gold is trading at the level of $2,316.45 per ounce.
The precious metal was also weighed down by the high likelihood that the Federal Reserve would maintain a tight monetary policy much longer than expected in early 2024. The focus of market attention is on the publication of the key inflation indicator in the United States - the Core Personal Consumption Expenditures Price Index, which the regulator pays special attention to when assessing risks. The release of this report is scheduled for Friday, April 26. According to preliminary forecasts, the indicator decreased to 2.6% year-on-year in March. Recall that its February value was 2.8% year-on-year.
Many investors are counting on some easing of geopolitical tensions. At the same time, market participants are switching to riskier assets such as stocks. According to CFTC data, the volume of major market players' long positions in gold futures and options is at a four-year high. The reason for profit-taking was the fairly rapid decline in the value of the precious metal. In addition, in recent months, gold has appreciated despite a steep rally in the greenback. In the current situation, the risks of a deep correction in the precious metal are increasing.
However, according to some analysts, there are favorable factors contributing to further gans in gold. Tailwinds for the yellow metal will be the US Federal Reserve's rate cuts, global instability, and the growing US government debt. Against this backdrop, even economists at Bank of America, who are skeptical about the prospects of the precious metal, expect its price to rise to $3,000 by 2025. Analysts at Citi Bank are also bullish on gold, expecting it to gain in the next 6–18 months. Many investors adhere to this position, asserting that the likely record of $3,000 per ounce will be surpassed in a couple of years.
Improvement in forecasts for gold prices in 2024 boosts investor optimism. It is worth noting that these forecasts anticipate an increase in the value of the metal in the near future. Confidence in such a scenario allows market players to weather the current market woes and prepare for an upcoming rise in gold.
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Post by kostiaforexmart on May 6, 2024 16:18:31 GMT -5
Weekly forecast based on simplified wave analysis of EUR/USD, USD/JPY, GBP/JPY, USD/CAD, NZD/USD, and Gold on May 6th
EUR/USD
Analysis:
The weekly chart scale of the major European currency pair shows that the dominant descending wave of recent months is nearing completion. The wave structure appears to be formed. The unfinished segment in the upward direction dates back to April 16.
Forecast:
We expect to see a general sideways movement in the euro's price in the upcoming week. One should expect an increase towards the calculated resistance zone in the coming days. Subsequently, there is a high probability of transitioning into a drift, followed by a further price decline. The greatest volatility is expected towards the end of the week.
Potential reversal zones
Resistance:
1.0870/1.0920
Support:
1.0620/1.0570
Recommendations:
Buying: Small volume purchases within the "intraday" framework can be profitable for the deposit.
Selling: Without confirmed reversal signals near the resistance zone, conditions for such transactions do not exist.
USD/JPY
Analysis:
Over the past year, the dominant upward wave of the main Japanese yen pair has been completed. The descending wave zigzag initiated on April 29 possesses reversal potential. Its structure began forming the middle part (B) at the end of last week. Quotes reached the lower boundary of the potential reversal zone on the H4 timeframe.
Forecast:
At the beginning of the upcoming week, there is a high probability of price movement within the corridor between the nearest counter zones. A transition to sideways drift is expected after possible pressure on the support zone. Towards the end of the week, one can expect a resumption of price growth towards the resistance boundaries.
Potential reversal zones
Resistance:
154.70/155.20
Support:
151.60/151.10
Recommendations:
Selling: Carries increased risk and may lead to losses for your deposit. Refraining from trading until the upcoming upward correction is completed is optimal.
Buying: Becomes possible after the appearance of reversal signals from your trading systems near the resistance zone.
GBP/JPY
Analysis:
The direction of movement of the British pound/Japanese yen pair since the end of September 2022 is determined by an ascending wave. On the weekly timeframe, it completes a larger ascending wave structure. The descending segment since April 29 possesses reversal potential and may mark the beginning of a correction of the main wave.
Forecast:
In the coming days, the flat character of the movement is expected to continue. A short-term increase in quotes to the resistance zone is not excluded. In the following days, an increase in volatility, a reversal, and a resumption of price decline are expected. A brief breach of the upper resistance boundary is possible upon course change.
Potential reversal zones
Resistance:
193.80/194.30
Support:
188.70/188.20
Recommendations:
Buying: It is suggested that the main attention be devoted to finding buy signals near the support zone.
Selling: It may become risky and not recommended in the coming days.
USD/CAD
Analysis:
The direction of movement of the Canadian dollar in the main pair since the end of December last year is determined by an ascending wave. The price has reached the boundaries of the wide potential reversal zone in the weekly timeframe. Since the middle of last month, pair quotes have predominantly moved sideways, forming a correction. The wave structure needs to be completed.
Forecast:
The most probable scenario for price movement in the coming days will be a gradual shifting sideways between the nearest counter zones. After a bounce in price towards the upper boundary of the channel, a decline in quotes towards the support area is expected.
Potential reversal zones
Resistance:
1.3730/1.3780
Support:
1.3580/1.3530
Recommendations:
Buying: High risk and may lead to losses.
Selling: Fractional volumes may be used within individual trading sessions.
NZD/USD
Brief analysis:
The unfinished wave structure of the New Zealand dollar chart is directed southward. It dates back to the end of December last year. The middle part (B) continues to form within the wave structure, resembling a horizontal plane. The resistance boundary runs along the lower boundary of a strong potential reversal zone of the large timeframe.
Weekly forecast:
During the upcoming week, gradual movement towards the resistance zone is expected. After reaching the calculated resistance zone, there is a high probability of a downward correction to the support zone.
Potential reversal zones
Resistance:
0.6100/0.6150
Support:
0.5970/0.5920
Recommendations:
Buying: Has limited potential and may be used for scalping.
Selling: After confirmed reversal signals appear near the support zone, it may become the main direction for trading this pair.
Gold
Analysis:
In the gold chart, the direction of short-term trends over the past year is determined by an ascending wave algorithm. Since mid-April, the wave has been correcting, forming an elongated plane. At the time of analysis, it does not appear complete, moving sideways flat along the calculated support zone.
Forecast:
In the coming days, the pair's price should complete the movement's correction phase. A subsequent reversal and price increase towards the resistance zone can be expected by the end of the upcoming week. Breaking out of the indicated price corridor is possible but unlikely.
Potential reversal zones
Resistance:
2360.0/2375.0
Support:
2290.0/2275.0
Recommendations:
Buying: Becomes possible after suitable signals appear near the support zone.
Selling: Conditions for such transactions will arise after confirmed signals appear near the resistance zone.
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Post by kostiaforexmart on May 7, 2024 8:17:37 GMT -5
Growth continues: Wall Street in green for third day in a row
American stock indices ended trading higher on Monday, marking their third consecutive positive session. Investors are once again raising hopes that the Federal Reserve may cut interest rates this year.
Global stock indicators also rose amid optimism about a likely rate cut. At the same time, the Japanese yen weakened against the dollar after a sharp rise last week associated with the proposed currency intervention.
Expectations for US central bank rate cuts fell during the year due to more persistent inflation. Some investors began to fear that a rate cut would not materialize at all, sending markets tumbling in April.
However, Friday's data showed that U.S. job growth slowed more than expected in April. That eased pressure on the Federal Reserve, making it less likely that rates would remain high for long. Combined with an unexpectedly positive corporate earnings season, this has given investors fresh momentum in recent sessions.
Last week, the Fed signaled it was willing to consider cutting interest rates but wanted to make sure inflation was falling sustainably before making that decision. Fed officials repeated that statement Monday.
Richmond Fed President Thomas Barkin said the current level of interest rates should slow the economy enough to bring inflation back to the central bank's 2% target. However, a strong labor market provides time to wait.
Traders now expect the Fed to cut rates by 46 basis points by the end of 2024, with the first cut forecast in September or November, according to rate probability app LSEG.
Stocks on both sides of the Atlantic, as well as in Asia, rose. The US labor market report on Friday was softer than expected, leading to renewed bets that the Federal Reserve will ease monetary policy as early as September.
The dollar index, which measures the US currency's exchange rate against six major trading partners, fell for the fourth session in a row. It comes after Friday's data showed the weakest job growth since October, allaying fears that the Fed could raise rates again.
However, the outlook for inflation remains uncertain as the market hopes interest rates will be restrictive enough to slow the economy and reduce the rate of price increases, Conger said.
The Dow Jones Industrial Average rose 176.59 points, or 0.46%, to 38,852.27. The S&P 500 added 52.95 points, or 1.03%, to 5,180.74. The Nasdaq Composite Index rose 192.92 points, or 1.19%, to 16,349.25.
Most sectors of the S&P 500 index ended trading on a positive note. The energy sector was one of the top gainers, thanks in part to U.S. natural gas futures hitting their highest level in 14 weeks.
Chipmaker shares were broadly higher on Monday, including Arm Holdings, which added 5.2% ahead of this week's earnings release.
Micron Technology (MU.O) shares rose 4.7% after Baird upgraded the stock. Advanced Micro Devices (AMD.O) and Super Micro Computer (SMCI.O) also rose 3.4% and 6.1%, respectively, regaining ground lost after last week's disappointing earnings.
Paramount Global (PARA.O) shares rose 3.1% after exclusive talks with Skydance Media ended without a deal, allowing a special committee to consider offers from other bidders.
Tyson Foods (TSN.N) shares fell 5.7% despite beating Wall Street's second-quarter profit expectations as the company warned of pressure on consumers from persistent inflation.
At the same time, shares of Spirit Airlines (SAVE.N) fell 9.7% to a record low after weak guidance for second-quarter earnings.
The S&P 500 posted 29 new 52-week highs and 2 new lows, while the Nasdaq recorded 150 new highs and 54 new lows.
In Europe, the cross-regional STOXX 600 index (.STOXX) rose 0.53%. It comes amid signs the European Central Bank is confident of cutting rates as euro zone inflation continues to slow, three ECB policy makers said.
Philip Lane, Gediminas Simkus and Boris Vujicic said inflation and growth data supported their belief that eurozone inflation, which stood at 2.4% in April, would fall to the central bank's 2% target by the middle of next year. of the year.
The MSCI World Shares Index (.MIWD00000PUS) rose 0.50% to close at 1,066.73, its highest level since June 2022. Markets in the UK and Japan were closed due to holidays.
The dollar index was down 0.07% at 105.10, lifting the euro 0.07% to $1.0766.
Goldman Sachs raised its 2024 earnings per share growth forecast for companies in the STOXX 600 Index (.STOXX) to 6% from 3%. The bank noted that a 10% annual rise in Brent oil prices adds about 2.5 percentage points to annual earnings per share growth, and a 10% decline in the euro/dollar exchange rate adds about the same.
Treasury yields fell as investors weighed in on sluggish job creation last week, bolstering views that the U.S. economy is not overheated and will not be hampered by rate cuts.
The yield on the 10-year U.S. Treasury note fell 1.3 basis points to 4.487% from 4.5% late Friday.
Traders now expect the Fed to cut rates by 43 basis points by year-end, with the first cut likely to come in September, according to rate probability app LSEG. Traders have cut their expectations to one cut in recent weeks due to signs of persistent inflation.
Oil prices rose after Saudi Arabia raised June crude oil prices for most regions. In addition, the unlikely prospect of a quick ceasefire in the Gaza Strip has revived fears of renewed fighting between Hamas and Israeli forces.
U.S. crude rose 37 cents to $78.48 a barrel and Brent crude rose 37 cents to $83.33 a barrel.
MSCI's index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) hit its highest level since February 2023, adding 0.66%, while the blue-chip China index (.CSI300) rose 1.5%.
Hong Kong's Hang Seng Index (.HSI) rose 4.7% last week, posting its longest daily winning streak since 2018. The index closed 0.55% higher on Monday.
Elsewhere, traders remain wary of potential yen volatility following past suspicions that Japanese authorities would intervene to stem the currency's sharp decline.
Tokyo is believed to have spent more than 9 trillion yen ($59 billion) to prop up its currency last week, pushing the yen from a 34-year low of 160.245 to about a one-month high of 151.86 per dollar, according to the Bank of Japan. within a week.
On Monday, the yen gave up some of its ground and was last trading at 153.95 per dollar, representing a decline of 0.63%.
Gold prices rose amid a weakening dollar. US gold futures for June delivery rose 0.9% to $2,331.20 an ounce.
Bitcoin added 0.65% to $63,343.00, while Ethereum was down 1.2% to $3,077.3.
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Post by kostiaforexmart on May 8, 2024 8:32:42 GMT -5
Trading Signals for GOLD (XAU/USD) for May 8-10, 2024: buy above $2,312 (21 SMA - symmetrical triangle)
Early in the European session, gold is trading around 2,310.68 forming a bearish bullish pennant pattern on the H4 chart.
Gold has been trading within a symmetrical triangle pattern formed since April 12. We believe that if there is a sharp break above 2,312 and consolidation above this area on the daily chart, gold could continue its rise and could reach 6/ 8 Murray at 2,375 and finally, 7/8 Murray around 2,437.
On April 18, gold left a GAP at about 2,392. If an upward movement occurs in the next few days and if gold consolidates above 2,375, the instrument could cover this GAP and even reach the psychological level of 2,400.
On the contrary, if gold falls and consolidates below the 21 SMA located at 2,312 and below 5/8 Murray, we could expect it to reach the 200 EMA located at 2,295. The price could reach the bottom of the symmetrical triangle pattern around of 2,270.
Since the beginning of May, the eagle indicator has been showing a positive signal and we believe that an upward movement in gold could occur in the coming days. For this scenario to be confirmed, we must wait for the double break of the bullish flag and symmetrical triangle pattern.
If this scenario comes true, it will be seen as an opportunity to buy. On the contrary, we could continue selling below 2,310.
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Post by kostiaforexmart on May 14, 2024 13:52:04 GMT -5
Trading Signals for XAU/USD (GOLD) for May 14-16, 2024: buy above $2,342 (21 SMA - rebound)
Gold is trading around 2,343, around the 21 SMA, and within the uptrend channel forming since early May. Gold, after a strong technical correction below 2,375, found a bottom around 2,330 which gave it an opportunity to recover.
The H4 chart shows that gold could resume its bullish cycle if it consolidates above 2,340 or 2,330 in the coming days.
If gold keeps its uptrend channel intact, a technical bounce around 2,330 would be a key point to buy with targets at 2,375 and 2,392. At this level, gold left a GAP on April 18 and the price is likely to reach this area so the GAP will be covered in the next few days.
If gold breaks and consolidates below 2,330, the outlook could be negative and we could expect a change in trend. Therefore, gold could reach 5/8 Murray located at 2,312 and the 200 EMA located at 2,301.
We believe that in the next few hours, gold could gain momentum and we can look for opportunities to buy, only if it settles above 2,330. Any pullback in the price will be seen as an opportunity to buy with targets at 2,355, 2,375, and 2,392.
On May 10, the eagle indicator reached the oversold zone and we believe that gold could resume its bullish cycle as we see a relief in the bearish pressure so that gold could continue to rise.
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Post by kostiaforexmart on May 15, 2024 9:29:58 GMT -5
Powell reassures investors: Nasdaq closes at record high, with focus on price index
The Nasdaq hit a new all-time high on Tuesday amid the close, while the S&P 500 and Dow also posted gains as comments from Federal Reserve Chairman Jerome Powell reassured investors ahead of a major consumer inflation report expected on Wednesday.
Producer prices in the US rose more than expected in April, especially due to significant increases in prices for services and goods, which forced investors to reconsider expectations for a reduction in interest rates in September.
However, speaking on Tuesday, Powell characterized the latest PPI data as mixed rather than an indication that the economy is warming, taking into account downward revisions to data from the previous period as well.
Powell's comment that he doesn't expect any near-term interest rate hikes despite recent data on high inflation also added to investor optimism.
"The market is now more confident in high rates over the long term. Much of the discussion has centered on the possibility of rate hikes, and Powell emphasized that this is not currently on the table," said Lindsey Bell, chief strategist at Charlotte, North Carolina-based 248 Ventures. She also noted that the rise in stocks was observed against the backdrop of falling Treasury yields.
"The bond market seems to be adapting and the stock market is responding to the bond market," Bell added.
However, ahead of Wednesday, investors were cautiously awaiting consumer price index data to see whether the surprise growth recorded in the first quarter and April would continue.
Persistent inflation and a stable labor market have prompted a revision of expectations for the Federal Reserve's initial rate cut from March to September.
However, the stock market has posted strong gains this year on the back of strong, better-than-expected quarterly earnings and the prospect of a possible rate cut by the Federal Reserve.
While the tech-heavy Nasdaq index made a strong run to its record set on April 11, the S&P 500 ended the trading day 0.1% below its closing high on March 28. Likewise, the Dow Jones closed at less than 1% of its record high, also reached on March 28.
The Dow Jones Industrial Average rose 126.60 points, or 0.32%, to 39,558.11. The S&P 500 added 25.26 points, or 0.48%, to 5,246.68, while the Nasdaq Composite rose 122.94 points, or 0.75%, to 16,511.18.
Among the 11 key industrial sectors in the S&P index, consumer staples posted the biggest decline, losing 0.2%, while the technology sector led gains, adding 0.9%.
Alphabet (GOOGL.O) shares rose 0.7% after Google showed off innovations in its use of artificial intelligence, including an update to its Gemini chatbot and improvements to its search engine.
Home Depot (HD.N) shares closed down 0.1% after falling more than 2% on the day. The decline followed the retailer's quarterly report, which showed an unexpected decline in same-store sales as consumers switched to smaller home projects and cut spending on big-ticket items.
Alibaba's US-traded shares fell 6% after announcing an 86% drop in fourth-quarter profit.
Shares of athletic footwear maker On Holding jumped 18.3% after the company raised its full-year sales forecast ahead of quarterly expectations thanks to strong demand for its sneakers.
US President Joe Biden has announced steep tariff increases on imports of a range of Chinese goods, including electric vehicles, computer chips and medical products.
Shares of Chinese electric vehicle maker Li Auto, also listed in the U.S., fell more than 2%, while shares of Tesla (TSLA.O) rose more than 3%.
AMC Entertainment (AMC.N) shares soared nearly 32% to $6.85, while Koss Corp (KOSS.O) shares rose 40.7% to $6.15, among other stocks popular during the 2021 meme rally. year and shares in a short position.
On the New York Stock Exchange (NYSE), AMC and GameStop were the most actively traded stocks, with advancers outnumbering decliners 2.43 to 1, with 358 new highs and 31 new lows.
Asian stock markets were higher on Wednesday, while the US dollar weakened as investors digested mixed US producer price data and awaited a key consumer price report that could have a significant impact on the Federal Reserve's near-term monetary policy.
MSCI's broad index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.38% to hit a new 15-month high during the trading session. Japan's Nikkei (.N225) rose 0.58%.
The latest data showed U.S. producer prices rose more than expected in April, indicating persistent inflation at the start of the second quarter.
Shares of GameStop (GME.N) and AMC (AMC.N), popular among retail investors, jumped significantly after messages from Keith Gill, known as "Growling Kitten", leading to discussions about the possible return of a key figure of the 2021 meme rally.
In the Chinese market, stocks started the day lower, with the blue-chip index .CSI300 down 0.16% and the Hang Seng Index .HSI in Hong Kong down 0.22%.
US President Joe Biden announced significant tariff hikes on some Chinese imports, including electric vehicles, computer chips and medical products.
In currency markets, the dollar continued to slide as investors held back action ahead of consumer price index data, while the euro neared its one-month high, last trading at $1.0817.
The US Dollar Index, which measures the value of the US currency against a basket of six major currencies, was seen at 105.01. The yen traded at 156.36 per dollar, having hit a two-week low of 156.80 on Tuesday, raising fears of new currency interventions by Japanese regulators.
On April 29, the yen fell to a 34-year low of 160.245 per dollar, followed by aggressive yen buying that traders and analysts speculated was carried out by the Bank of Japan and the Japanese Ministry of Finance.
Commodity prices rose in response to the threat of major wildfires in Canada's oil sands and ahead of expected declines in U.S. crude oil and gasoline inventories later in the day.
The US WTI crude oil price rose 0.4% to $82.71 a barrel, while Brent crude rose 0.5% to $78.39 a barrel. The spot price of gold remained virtually unchanged at $2,356.79 per ounce.
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