Stocks Rally at Last – Nasdaq Surges 2.2%
It has taken a while, but at last investors saw the type of move on Wall St that they have been hoping for since the start of the year. The Nasdaq led the way higher gaining 2.20% aided by Nvidia announcing new AI products for personal computers, the S&P followed in its wake gaining 1.41% on the day and the Dow brought up the rear, closing 0.58% higher. The dollar dropped off slightly against most of the majors, losing 0.2% on the index and US treasury yields pulled back, the 10-year trading down to 4.01% with the 2-year at 4.37%. Oil was smashed after Saudia Arabia cut prices and Gold dropped to a 3-week low, now trading around $2,030 per ounce.
Oil Prices Smashed Again – WTI Down 4.1%
Oil prices took a hammering yesterday as price cuts from Saudi Arabia failed to bring about a rally and instead just heightened concerns over global demand moving forward. Data confirming a rise in OPEC output also did not help as production in Angola, Iraq and Nigeria offset cuts by the Saudi’s and other OPEC+ members. Brent Crude dropped 3.4% to trade at $76.12 a barrel and West Texas Intermediate took an even harder hit to lose 4.1%, down to $70.70 a barrel. Traders are preparing for more volatility ahead as geo-political tensions are still high in the Middle East and any signs that the conflict could escalate or spread will lead to rallies in the price, whilst indications that global demand is remaining low could see further moves south.
Markets Bullish into Today’s Trading Day
Global markets are set to start the day on the front foot today after Wall St at last saw a strong positive day in 2024. There is little in the way of tier 1 data or central bank updates across the trading sessions today and investors will be hoping that this will see the positive momentum continue. Initial focus in the Asian day will be on Australia with the latest Retail Sales numbers being released in the Sydney morning but there is little else to trouble the scorers for the rest of the session. There is also little of note due out in the European session but the release of Trade Balance data in the US and Canada should draw some attention later in the day.
