Wall Street capped a winning week with another surge, pushing major U.S. stock indexes to record levels. The S&P 500 and the Nasdaq composite both closed at all-time highs, while the Dow Jones Industrial Average also gained ground.
Tech stocks led the rally, fueled by optimism about the cooling inflation and a strong economy. Dell Technologies jumped after reporting better-than-expected earnings, highlighting the robust demand for AI technology. NetApp also surged on positive results and upbeat forecasts.
However, the mood was downbeat in the banking sector. New York Community Bancorp plummeted after disclosing internal control issues and delaying its annual report. This raised concerns about broader challenges faced by regional banks, especially with rising interest rates squeezing the financial system.
Investors are now looking to the Federal Reserve, hoping for interest rate cuts later this year. Recent economic reports, showing slower manufacturing growth and weaker consumer sentiment, fueled these expectations. The Fed has hinted at potential cuts if inflation continues to decline, but strong economic data has pushed back forecasts for their timing.
Treasury yields dropped after the economic data, reflecting market bets on future rate cuts. Deutsche Bank economists predict a 1% cut by June, but warn of potential risks like inflation resurgence due to loosened economic conditions.
Stock markets abroad also rose, though more modestly compared to the U.S. rally.
Disclaimer:
This article is for informational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions. While the information presented is believed to be accurate, there is always the possibility of errors or omissions. Additionally, the financial markets are subject to rapid change, and any information contained herein may become outdated at any time.
