Interest Rate Cuts Speculation Boosts US Stocks: Three Indexes Rise for Two Consecutive Years

US Stocks Daily｜ Interest rate cuts continue to speculate, three indexes rise for two consecutive years (Spencer Platt via Getty Images)

US stocks did well, with all three major indexes closing at near-daily highs The S&P 500 and Nasdaq rose for three straight days, each rising more than 1%, and ‘ the Dow Jones rose for four days in a row. Last week’s earnings data was worse than expected, which strengthened investors’ expectations of interest rate cuts In addition, the performance of the US stock market was generally better than expected, attracting in- capital flows into the stock market. The dollar weakened and gold prices rose.

The oil stock movement rose again and again. Saudi Arabia’s Eurasian source oil prices increased.

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Market conditions on May 6 (Monday)

l Dow Jones Index It rose 176.59 points or 0.46% to 38,852.27 points.

l S&P 500 It rose 52.95 points or 1.03% to 5,180.74 points.

l Nasdaq Index It rose 192.92 points or 1.19% to 16,349.25 points.

l New York oil futures for June It closed at $78.48 a barrel, up $0.37 or 0.5%.

l New York June gold futures As of afternoon Eastern Time, it was trading at US $2,333.6 an ounce, up US $25.0 or 1.0%.

l The interest rate on the 10-year US Treasury bond It closed at 4.489%, down 1.1 points.

Technology stocks continue to lead the market,Nvidiaincreased by 3.5%,Metaan increase of almost 3%,an applefell 1%, giving up some of the gains made after the previous day’s results.TeslaIt once rose 3.5%, but the gain was pared at the end of the day. The Bank of America report said that if China allows the use of fully autonomous driving software, the company’s combined profits could reach more than US$2 billion a year by 2030.

boeingfell 1.3%. They said that workers found something wrong during the production process, and that some workers broke the process and did not do some tests. Weight loss drug concept stockEli Lillyretreated by 4.2%,AmgenIt gave up 3.5%.

A popular trading platformRobinhoodSoft, the SEC plans to file a complaint against its cryptocurrency division,Bitcoinfell.meme sourcesGameStopIt fell by nearly 10% at one point, but the closing decline slowed significantly.Virgin GalacticAs soon as it rose to double digits, its Delta-class spacecraft ground test facility began operating.

Mike Wilson, director of investment at Morgan Stanley, said that the main US economic data was mixed, causing volatility in the stock market, and asked investors to increase their holdings of defensive stocks, such as consumer staples stocks, utility stocks, etc.

He believes that the inflation rate is the key to understanding the path of monetary policy and related market expectations Given the current macroeconomic uncertainty, it is likely that the market reaction after the release of inflation data is more important than the data itself.

The non-farm payrolls data released last Friday was worse than expected, US stocks rose to a near one-month high, and market expectations for an interest rate cut increased.

Ken Griffin, founder of the Citadel hedge fund, said he expects the Federal Reserve to cut interest rates this year. If it chooses to stay in September, it may be possible to cut interest rates in December. Powell, who has been urging Powell to cut interest rates slowly, believes the authorities have made a “reasonable choice” by keeping interest rates higher for longer.

New York Fed President Williams said the ups and downs of the data could be unpredictable, and the decision whether to cut interest rates will be based on the overall situation, but the central bank will cut interest rates at the end.

Thomas Barkin, president of the Federal Reserve Bank of Richmond, said the full impact of higher interest rates on the economy has yet to be seen. He believes that the current binding interest rate can curb demand and bring inflation back to target. However, housing costs and service sector price increases are likely to remain high, while the labor market is strong, giving the agency time to wait until they are sure inflation will continue to decline before cutting rates. smooth

Jane Fraser, president of Citigroup, said that the spending pattern in the United States has become two poles.