| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 37,753.31 | -45.66 | 0.00 |
| S&P 500 | 5,022.21 | -29.20 | -0.01 |
| Nasdaq | 15,683.37 | -181.88 | -0.01 |
| VIX | 18.21 | -0.19 | -0.01 |
| Gold | 2,380.50 | -8.10 | 0.00 |
| Oil | 82.83 | 0.14 | 0.00 |
US MARKET
The Dow Jones Industrial Average closed higher on Tuesday as Federal Reserve Chair Jerome Powell hinted at a delay in interest rate cuts, contrary to prior expectations. Powell’s remarks followed unsettling reports of elevated consumer-price index figures, leading to market turbulence.
Despite Powell’s indication of a prolonged wait for rate cuts, stock and bond markets experienced fluctuations throughout the day. The S&P 500 dipped by 0.2%, while the Dow saw a 0.2% increase, ending a six-day downward trend.
UnitedHealth Group’s strong first-quarter results boosted the Dow industrials, with shares rising by 5.2%. However, bank earnings received mixed reactions, with Morgan Stanley gaining 2.5% but Bank of America dropping 3.5%.
The Russell 2000 index, reflecting smaller companies, saw a slight downturn. Jack Ablin from Cresset Capital expressed disappointment over the absence of rate cuts, particularly for smaller businesses.
LOCAL MARKET
On Wednesday, US stocks staged a rebound following a three-day decline, with all three major indices posting modest gains, while longer-term bond yields retreated.
The recent market downturn was driven by concerns surrounding robust inflation data and the Federal Reserve’s stance on interest rates. Federal Reserve Chair Powell’s remarks underscored a cautious approach, emphasising the necessity for increased confidence in inflation moderation. Consequently, market expectations for imminent rate cuts have been tempered, with investors now anticipating fewer cuts by year-end compared to earlier projections.
This adjustment reflects evolving market sentiment, as highlighted by economists like Ian Shepherdson and Jamie Cox. Meanwhile, bond yields eased slightly on Wednesday, with the 10-year Treasury yield declining to 4.626%.
At the opening bell, the S&P 500 stood at 5,074.74, up 0.47%, the Dow Jones Industrial Average at 37,918.94, up 0.34%, and the Nasdaq Composite at 15,940.95, up 0.51%. Other notable developments included Elon Musk’s wealth decline of $160 billion amidst Tesla’s challenges, the upcoming “halving” event for Bitcoin potentially impacting its price, and Rolex’s CEO advising against viewing luxury watches as investments.
In commodities and crypto markets, West Texas Intermediate crude oil fell 0.9% to $84.51 a barrel, while Brent crude dropped 1% to $89.04. Gold edged up 0.17% to $2,387.25 per ounce, and Bitcoin dipped 1.21% to $62,241.