The stock market saw a rally in the world’s biggest technology companies, which helped to counteract the cautious comments from bank executives that caused financial shares to tumble. Tesla Inc. led gains in megacaps after a bullish analyst call, while Oracle Corp. hit an all-time high. Bank of America Corp. and JPMorgan Chase & Co. both tempered their earnings optimism, and Goldman Sachs Group Inc. signaled a potential drop in its trading unit.
Investors also considered election risks ahead of the first debate between former President Donald Trump and Vice President Kamala Harris. This matchup provided investors with a chance to gain more clarity on various policy proposals that could impact the market.
Leading up to the consumer price index release, a 22V Research survey indicated that 56% of respondents believe the core measure is on a Fed-friendly glide path. However, the share of investors expecting a recession remains elevated, with 48% expecting a mixed or negligible market reaction to the CPI data.
As Wells Fargo Investment Institute’s Sameer Samana pointed out, the market’s aggressive expectations for Fed rate cuts could lead to downside volatility if the CPI data comes in hotter than anticipated.
In terms of market performance, the S&P 500 rose 0.4%, the Nasdaq 100 added 0.8%, and the Dow Jones Industrial Average slid 0.2%. Treasury 10-year yields dropped six basis points to 3.64%, and Brent futures fell below $70 due to oversupply concerns.
Key events to watch this week include the US CPI release, Japan PPI data, the ECB rate decision, US initial jobless claims, Eurozone industrial production numbers, Japan industrial production data, and the U. Michigan consumer sentiment report.
Here are some of the main market moves:
– Stocks: The S&P 500 rose 0.4%, the Nasdaq 100 rose 0.8%, and the Dow Jones Industrial Average fell 0.2%.
– Currencies: The Bloomberg Dollar Spot Index was little changed, with minor movements in the euro, British pound, and Japanese yen.
– Cryptocurrencies: Bitcoin and Ether saw slight gains.
– Bonds: The yield on 10-year Treasuries declined six basis points, while yields in Germany and Britain also saw decreases.
– Commodities: West Texas Intermediate crude fell, while spot gold rose.
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