(Bloomberg) — Stock markets are in good shape on solid signs that the world's largest economy remains in good shape after the Federal Reserve's aggressive tightening policies. Finishing this week.
Most Read Articles on Bloomberg
While strong economic data suggests the Fed may not cut rates too dramatically, expectations that authorities will begin easing by the end of the year are fueling risk appetite. Lower Treasury volatility continues to bode well for the S&P 500's most powerful group, suggesting tech stocks are outperforming and the U.S. stock benchmark is on the verge of all-time highs.
The stocks that led the 2023 rally are once again traders' top picks, with investors betting on growth, technology, the “AI bubble” and the so-called Magnificent, according to Bank of America's Michael Hartnett.・He is returning to owning Seven. . BofA, citing data from EPFR Global, said there were $4.3 billion in redemptions in U.S. stocks in the week ending Jan. 17, the largest two-week period for tech stock funds since August, compared to $4.0 billion in redemptions in the week ending Jan. 17. He said there was an influx of funds.
“In short, we are out of a bullish boil, and while the ship is not full, it is still firmly tilted in the positive direction,” said Peter Boockvar, author of the Book report.
With corporate earnings season in full swing, traders were awaiting data on consumer sentiment and housing for clues about the Fed's next steps. Several officials are scheduled to speak Friday before the Federal Open Market Committee goes into a self-imposed communications blackout ahead of its Jan. 30-31 meeting.
The S&P 500 contract suggested the U.S. stock index will erase losses this week. Nasdaq 100 futures outperformed Thursday after tech stocks ended at a record high. While the dollar fluctuated, 10-year Treasury yields were little changed.
Economist Mohamed El-Erian said markets are overestimating the pace and amount of Fed rate cuts because they are overlooking persistently high inflation.
“I think we're reaching a pivot, but it won't be as fast or as deep as the market expects,” said El-Erian, president of Queen's College, Cambridge and a Bloomberg Opinion columnist.
Swap traders are currently pricing in about 140 basis points of easing this year, down from a recent peak of about 175 basis points.
Company highlights:
-
Apple has vowed to open up its coveted iPhone tap-to-pay technology to rivals to avoid potentially costly European Union antitrust fines.
-
Amazon.com's proposed $1.4 billion acquisition of Roomba maker iRobot is expected to be blocked by European Union antitrust regulators over concerns it would harm other robot vacuum makers. .
-
JB Hunt Transport Services transported more cargo containers in the fourth quarter than Wall Street expected, suggesting the sector may be recovering from a down year.
-
Ford Motor Co. has cut production of its F-150 Lightning electric truck amid weak demand for electric vehicles.
-
Spirit Airlines says its contract with JetBlue Airways “remains in full force and effect” and how JetBlue will strengthen liquidity after court ruling blocks multibillion-dollar acquisition The company said it is exploring ways to provide some relief to investors.
-
SLB raised its dividend to shareholders by 10%, marking its highest payout since 2020, as drilling growth outside North America boosted the world's largest oilfield contractor's performance.
-
Ally Financial reported fourth-quarter results that beat analyst expectations and announced the sale of its point-of-sale financial business, which includes $2.2 billion in loans, to Synchrony Financial.
The main movements in the market are:
stock
-
As of 8:51 a.m. New York time, S&P 500 futures were up 0.4%.
-
Nasdaq 100 futures rose 0.7%
-
Dow Jones Industrial Average futures rose 0.5%
-
Stoxx Europe 600 has little change
-
MSCI World Index rose 0.2%
currency
-
The Bloomberg Dollar Spot Index fell 0.1%.
-
The euro was almost unchanged at $1.0881.
-
The British pound fell 0.2% to $1.2676.
-
The Japanese yen remained almost unchanged at 148.14 yen to the dollar.
cryptocurrency
-
Bitcoin rises 0.5% to $41,276.5
-
Ether rose 1.4% to $2,489.08
bond
-
The 10-year government bond yield was almost unchanged at 4.15%.
-
Germany's 10-year bond yield fell 2 basis points to 2.33%.
-
UK 10-year bond yields fell 2 basis points to 3.91%.
merchandise
-
West Texas Intermediate crude rose 0.1% to $74.16 per barrel.
-
Spot gold rose 0.6% to $2,035.77 an ounce.
This article was produced in partnership with Bloomberg Automation.
–With assistance from Farah ElBalawy.
Most Read Articles on Bloomberg Businessweek
©2024 Bloomberg LP
