The Dow Jones Industrial was up 0.61% at the close. and amounted to 39,005.49 points. The S&P 500 gained 1.12% at the end of the day. and amounted to 5,175.27 points. The index is at its highest level in history, beating the previous record set on March 7. The Nasdaq Composite rose 1.54%. and closed the session at 16,26564 points. The Russell 2000 index of small-cap companies gained 0.06%. and amounted to 2,067.23 points. The VIX volatility index fell by 9.20 percent, to 13.82 points.
There is no turn towards the bears
“It turns out that it's hard to see what could stop market momentum as earnings, inflation and interest rates move in the right direction,” said Skyler Weinand, chief investment officer at Regan Capital.
The current bull market has been going on since approximately the end of October. However, while sentiment is generally bullish, momentum appears to have waned in major markets, Citi analysts said.
“Investor sentiment in US stocks seems less optimistic, but there is no turn towards the bears. Only a few short positions remain on the S&P and none on the Nasdaq positioning, but the pace of inflow of new long positions and ETFs has slowed since the end of last year,” he wrote Chris Montagu from Citi Bank.
The central bank is unlikely to lower interest rates
Investors are analyzing CPI data in the US. US consumer prices rose 3.2% in February. on a y/y basis, and m/m increased by 0.4%. Expected +3.1%. y/y and +0.4 percent mdm. Core inflation, an indicator that does not take into account fuel and food prices, increased by 0.4%. mdm and 3.8 percent rdr. Expected +0.3%. mdm and +3.7 percent rdr.
Market expectations indicate that the US central bank will not cut interest rates at its meeting next week, but according to CME FedWatch Tool it estimates over 70%. chances of a rate cut in June.
BofA Global Research raised its 2024 earnings per share forecast for S&P 500 companies to $250 from the previously expected $235. Shares of chipmaker Nvidia rose more than 7%. Microsoft gained 2.6%, and Meta Platforms increased by 3%. Oracle shares rose more than 11 percent. and are the most expensive on record after the infrastructure software company reported better-than-expected quarterly results.
Consumer stocks rose
Boeing's stock dropped more than 4 percent. The aircraft manufacturer is under pressure over an investigation into an in-flight door failure. An audit by the Federal Aviation Administration found dozens of problems with the production of the 737 MAX. Southwest Airlines fell almost 15%. after lowering its forecast for the number of planes it expects to receive from Boeing.
Consumer stocks rose. Amazon and Best Buy gained over 2% each, being among the strongest companies of Tuesday's session. Lululemon Athletica and Chipotle Mexican grill each gained about 1.5%, and Airbnb, Bath & Body Works and Marriott International each gained more than 1%.
On the oil market, WTI contracts for April are down by 0.17%. to USD 77.80 per barrel, and May Brent futures fall by 0.11%. up to USD 82.12/b.
