Market Recap – Global Rally Pushing Valuations To Record Highs Across the US, Europe & Japan

 Economic Indicators & Central Banks:

  • It was all about Nvidia. Nvidia got a $277 billion 1-day boost to its market capitalization yesterday – the biggest single-session increase in value ever!(the previous record was a $197 billion gain by Meta Platforms Inc.)
  • Treasuries continued to lose ground, hurt by the surge in risk appetite with yields cheapening to the highest levels since late last year.
  • The solid jobless claims report, which followed on the heels of the hawkish bent in the FOMC minutes, added to expectations the FOMC will leave rates in restrictive territory into June at least.
  • A weaker than expected S&P Global services headline saw rates dip briefly.
  • Japanese markets are closed for a public holiday.
  • Fed Governor Christopher Waller: ”interest rate cuts should be delayed at least two more months, but indications of healthy demand and concerns over supplies could boost prices in the coming days.”
  • Today: Germany IFO business climate & GDP, ECB publishes 1- and 3-Year inflation expectations survey.

Market Trends:

  • Massive global rally in risk that saw the NASDAQ(USA100) jump 2.96% to 16,041.6, falling just short of the historic peak of 16,057 from November 2021. The S&P500 (USA500) climbed 2.1% to 5100, and the Dow (USA30) was up 1.18% to 39,069, both marking new records.
  • Asian stock markets today continued to move higher, with the global rally pushing valuations to record highs across the US, Europe and Japan. The Nikkei jumped a further 2.2%.

Financial Markets Performance:

  • The USDIndex was little changed at 103.80, below 104 for the first time since February 2.
  • The Yen has performed the worst so far this year, experiencing a 6.3% decrease against the Dollar, as investors sought higher yields in other currencies, anticipating that Japan's interest rates would remain close to zero for the foreseeable future.
  • The Yen weakened against the Euro, Sterling, and other currencies this week, marking its 4th consecutive weekly decline against the US Dollar.
  • USOil slipped to $77.85 per barrel after Fed speeches indicated delay to rate cuts.
  • Gold dipped to $2021 per ounce.

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Andria Pichidi

Market Analyst

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