NAS100 Upbeat on Nvidia’s Blowout Results, Overlooking Hawkish FOMC Minutes
The tech heavy-index looks past the reserved approach of Fed officials in regards to rate cuts, as the AI leader Nvidia delivered blockbuster results and guidance
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The tech heavy-index looks past the reserved approach of Fed officials in regards to rate cuts, as the AI leader Nvidia delivered blockbuster results and guidance
Japan’s Nikkei 225 (JPN225) hit a record today, trading at a high of 39,178. This is higher than the previous high of 38,915 reached in 1989. The Japanese index has been powered by a weaker yen, strong earnings, and investor-friendly measures.
The SPX500 is hovering just shy of the 5,000 level. Goldman Sachs has set a new target for the index, the second time it has done so since December. The investment banks now estimate a year-end target for the SPX500 of 5,200 which is higher than its previous estimate of 5,100.
The index finds some support as China’s central bank cut the key rate that affects mortgages, but the move could pressure banking profitability
US headline CPI printed at 3.1%, which was lower than the previous 3.4% but higher than the 2.9% expected. The headline month-on-month number was 0.3%, higher than the previous month’s 0.2%.
Pay growth continued to decelerate, but the data were higher than expected and the index is pressured, as markets brace for Wednesday’s inflation update
The SPX500 weekly chart has moved into overbought territory with its RSI above 80 (green rectangle). This comes as the index nears the 5,000 level. Round numbers often prove to be psychological resistance areas, and this may be the case given the index’s frothy indications. I.e. a pullback over the coming weeks is a distinct possibility.
The index is cautious around record highs, awaiting the Fed’s policy decision and quarterly results from tech giants like Microsoft, Meta and Apple
The French index rises after Ms Lagarde stood by recent comments for summer rate cuts, while luxury giant LVMH posted strong 2023 results
Chinese authorities are considering a rescue package to stabilise its ailing stock market. This is not a surprising given how poorly FXCM’s CHN50 basket has performed. On a longer-term monthly scale, CHN50 is sitting in a bearish channel between its lower blue and red bands. Moreover, the momentum-based RSI is languishing below 50, denoting an underlying bearish momentum.
The tech-heavy index reaches new records despite moderation in the Fed rate cuts bets, with key data and earnings by Netflix and Tesla coming up
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