The Dow Jones Industrial was up 0.17% at the close. and amounted to 39,872.99 points. The S&P 500 gained 0.25% at the end of the day. and amounted to 5,321.41 points. The Nasdaq Composite rose 0.22%. and closed the session at 16,832.62 points. This is a new historical record for this index. The Russell 2000 index of small-cap companies is down 0.21%. up to 2,097.97 points The VIX volatility index falls by 2.22%, to 11.88 points.
“Market sentiment remains relatively good”
This week, investors are waiting for the publication of the minutes of the Fed's last meeting, which will take place on Wednesday at 8 p.m. Polish time. According to LSEG data, markets are pricing in around 43 bps. interest rate cuts in the US in 2024. Fed Vice Chairman Philip Jefferson said on Monday that it is too early to say whether the slowdown in inflation dynamics is permanent, and Vice Chairman Michael Barr assessed that restrictive monetary policy needs more time to effectively fight inflation .
Fed Governor Christopher Waller said he wants to see “several months” of supportive inflation data before cutting rates. Matt Rowe, head of cross-market strategies at Nomura Private Capital, believes the market has “rejected” several components of inflation amid troubling consumer data. “In terms of volatility, the market is pricing in zero disruption, as if it is almost certain that the market will continue to move up slowly but higher nonetheless. And it looks like everything is in the clear,” Rowe said. But he added that markets are priced for perfection in an imperfect world. “There are a lot of things going on that could disrupt this quiet history,” Rowe said.
“Market sentiment remains relatively positive, with implied volatility at low levels, supported by greater hopes for U.S. interest rate cuts this year,” Kyle Rodda, senior markets analyst at CapitalCom, wrote in a report, adding that the rally in metal prices may contribute to keeping inflation at a stable level.
In turn, Keith Buchanan, portfolio manager at Globalt Investments, estimates that the disinflation narrative remains intact. “The market will continue to grow if earnings confirm the sustainability of corporate profitability. However, this could create a market situation in which we could be somewhat limited in the scope for further growth,” said Keith Buchanan.
“For Nvidia, confidence in the AI boom is more than just hype”
“The market expects good results, which may play an important role this week. We think there's a good chance things will go well,” said Jacques Henry, head of cross-asset research at Silex IM, pointing to solid first-quarter gains in the technology sector.
Nvidia shares gained 0.6%, after gaining 2.5%. at the end of the previous session. The company will publish its financial report for Q1 after the session on Wednesday. “In the case of Nvidia, the confidence associated with the artificial intelligence boom is more than just hype. This has real substance,” said Derren Nathan, head of equity research at Hargreaves Lansdown.
Macy's rose 5%. The company raised its full-year earnings per share forecast. Lowe's shares fell almost 2%. although the home furnishings retailer reported better-than-expected first-quarter earnings and revenue. Shares of Palo Alto Networks fell almost 4%. after the forecast for the fourth quarter of the financial year disappointed investors. Peloton Interactive is down more than 16%. There has been information in the media that the fitness equipment manufacturer is looking to refinance its debt to regain balance in the face of falling sales.
Li Auto shares listed on the US stock exchange lost over 3%. after the Chinese company postponed plans to launch electric SUV models until next year. On the oil market, WTI contracts for June are down by 0.93%. to USD 79.06 per barrel, and July Brent futures fall by 1.03%. up to USD 82.85/b.
