In a trading climate characterized by anticipation, US stocks closed off mixed on Monday. Investors are looking ahead to the testimony by Federal Reserve Chairman Jerome Powell and the release of the latest job market data. Tech stocks particularly had a good run, with Nvidia and Super Micro Computer recording significant gains.
The Federal Reserve chairman is set to provide his address to Congress on Wednesday and Thursday, in a session that will further clarify the direction of monetary policy. “There’s always the potential some surprises which could lead to some volatility,” noted Sam Millete, Director of Fixed Income at Commonwealth Financial Network.
Awaiting Remarks from ECB and Other Federal Reserve Officers
Echoing the US scenario, European markets also concluded February positively, amid rising expectation of rate cuts from central banks. Aside from Powell, statements from other Federal reserve speakers such as Philadelphia Fed President Tom Harker, alongside presidents Neel Kashkari and Loretta Mester are going to factor into the trajectory of Fed policy.
This ambiance of anticipation was also vivid in Wall Street where stocks closed lower. This comes after record highs, with U.S. Treasury yields ticking higher as investors hold their breath for major data and Jerome Powell’s testimony.
Moreover, The European Central Bank’s (ECB) rate decision is also eagerly anticipated. Despite mixed closing sentiments, European markets showcased strong momentum following the bullish trend on Wall Street, recording a record high for the Euro Stoxx 50.
On The Global Scene
The narrative was slightly different in Canada, aiming to hold its bank policy meeting soon. The Bank of Canada (BOC) previously halted its interest rate hikes for four consecutive meetings, widely expected to maintain the rate at 5% this week.
Furthermore, Asian markets echo this anticipation with China’s National People’s Congress (NPC) annual meeting set to address domestic demand and the ongoing property crisis.
In Australia, the latest market rally saw the ASX 200 closing above 7,700 for the first time on record. The economic trajectory of Australia will be examined when its fourth-quarter GDP data is released this week.
Information Box:
• The S&P 500 closed at 5,130.95, down 0.12%, Dow Jones Industrial Average at 38,989.83, down 0.25%, and Nasdaq Composite at 16,207.51, down 0.41%.
• Gold rose 1.4% to $2,125.90 per ounce.
• Bitcoin approaching its all-time high, with a 7% gain to $67,583.
• Nvidia and Super Micro Computer led with gains of over 3% and 19% respectively.
• Wall Street stocks closed lower, marking a shift away from record highs.
• Major economies worldwide anticipate central banks’ actions on rate cuts, and economic indicators such as US non-farm payroll and China’s CPI will impact these decisions.
Reference 1: Businessinsider.com Markets Insider, Filip De Mott Mar 4, 2024
Reference 2: Reuters, Stephen Culp, March 4, 2024
Reference 3: Euronews.com, Tina Teng, Published on 04/03/2024