Markets Mixed Ahead of Inflation Data – Nasdaq up 0.6%.
US markets were mixed overnight with the Nasdaq powering higher on more good news for Nvidia whilst the Dow slipped a similar amount. The Nasdaq closed up 0.59%, its first close above 17,000, the S&P gained just 0.02% and the Dow dropped 0.55%. US Treasury yields pushed higher again after a lackluster auction result for 2- and 5-year notes, the benchmark 10-year added 6.5 basis points to 4.538% and the more rate sensitive 2-year pushed up 1.9 basis points to 4.972%. The dollar pushed slightly higher after US consumer Confidence data came in better than expected. Oil was another big mover as traders pushed it higher in anticipation of confirmed production curbs at next weeks OPEC+ meeting, Brent up 1.4% to $84.22 a barrel and WTI up 2.11% to $79.83 a barrel. Gold edged higher to close the NY session at the $2,357 level.
Nasdaq Closes Above 17,000 – Nvidia Again the Star Performer
It was a bit of a mixed day for global financial markets yesterday as investors await key inflation data later in the week, however a standout mover in relatively quiet markets was the Nasdaq which hit another new record to close above 17,000 for the first time. Once again Nvidia was a major mover, climbing over 7% as news hit the market that Elon Musk’s new AI startup xAI will use Nvidia’s H100 graphics processing units. As xAI has raised over $6bio, this was naturally seen as a good thing by the market, but other updates in the US may see more topside moves thwarted as another strong print in US data adds fuel to the Fed’s ‘higher for longer’ rate case. AI stocks and Nvidia in particular have helped the current bull run for US stock markets, but some investors are concerned as we enter the crucial summer market period that the run may lose some of its momentum, especially if anticipated rate cuts don’t appear by the end of the year and if any cracks start to appear in the AI sector which has only really experienced profound optimism so far.
Inflation Numbers to Hit the Market Today
Global financial markets got back to full capacity yesterday after a long weekend for some centres and today we see that start of the major data hits for traders. Australia is first up in investor sights this morning with the release of key CPI data due early in the Asian session. The European session will see Euro traders closely monitoring news screens throughout the day as the German Prelim CPI numbers are delivered state-by-state. There is little scheduled on the calendar in the New York session and traders are expecting smoother trading conditions, however many will be monitoring the latest update from the Richmond Manufacturing Index as well as tuning in to hear from FOMC Member John Williams when he speaks in New York.
