Stocks Drive Higher Ahead of Big Tech and Fed – Nasdaq up 1.1%
US Stock markets drove higher in the first day of trading in what could be a pivotal week for markets. With mega-cap tech company earnings and the Federal Reserve rate decision just sessions away, investors very much took a glass half full approach and pushed the major US stock indices higher again yesterday. The Dow closed up 0.59%, the S&P gained another 0.76% to post another record high close and the Nasdaq jumped 1.12%. US treasury yields dropped after the Treasury Department advised that it is set to borrow less than expected this quarter, the 2-years dropping 5.7 basis points to 4.31% and the 10-year losing 9.4 basis points to hit 4.07%. The dollar had another quiet day with the only notable mover in the majors being the Yen which gained 0.5% against the greenback and Oil slide on further demand concerns.
Bullish Markets into a Big Week Ahead
US markets kicked off a big week ahead with a very bullish tone in trading yesterday, but some experienced investors are seeing potential storms ahead. Stock markets are now driving higher on the back the strong potential for a soft landing for the US economy that recent data has been pointing to, however, this week we have some key jobs numbers in the US and if they start to turn then the atmosphere in the market could change quickly. They culminate in the non-Farms on Friday but JOLTS tonight and the ADP and Employment Cost index on Wednesday can all play their part in the picture. On top of the data, we have the small issue of negotiating the FOMC rate announcement and given that this latest bull run took off after the Fed pivot at the last meeting and change of message from the Fed could have a similar affect on markets, throw in some very big players earnings numbers this week and we have the potential for some huge volatility over the coming days.
The Trading Week Starts Today
For many traders, yesterday’s trading sessions were very much an appetizer for the rest of the trading week which promises to dish up volatility in big portions as central banks, data releases and earnings numbers are all on the menu. The Asian session kicks off with Australia in focus early in the day with the release of the latest Retail Sales numbers. In Europe we have some key data out of Spain in the form of the CPI numbers as well as GDP data from Spain, Germany, and France. The US session promises to be the most lively again with the release of the CB Consumer Confidence number as well as the first key jobs number of the week, the JOLTS Job Openings data – with expectations for an 8.73mio print for the month.
