| Listen to our audio presentation: Stock Market Timing |
Market Performance and Anticipation
Global equities saw marginal gains on Monday as the U.S. 10-year Treasury yield edged up. Investors were focused on several key events: Federal Reserve Chair Jerome Powell’s upcoming testimony, crucial inflation data, and the onset of the corporate earnings season.
Wall Street and Global Indices
On Wall Street, the Dow Jones Industrial Average dipped slightly, while the S&P 500 and Nasdaq Composite managed small gains. The S&P 500 marked its fourth consecutive record close, and the Nasdaq achieved its fifth. MSCI’s global equities gauge rose modestly, having hit an intraday record earlier in the day, while Europe’s STOXX 600 index closed slightly down.
Powell’s Testimony and Inflation Data
Investors eagerly awaited Powell’s testimony to Congress, hoping for insights into potential interest rate cuts. Additionally, the U.S. consumer price report due Thursday was expected to show a slowdown in inflation, which could influence market dynamics. Traders speculated on the Fed’s rate cut timeline, with increasing bets on a cut by September.
Euro and Forex Markets
The euro experienced fluctuations, initially hitting a multi-week high against the dollar before easing. This came after a surprising result in France’s parliamentary elections. Despite potential concerns about a shift towards euroskeptic policies, the market reacted positively to the leftist alliance’s win, alleviating fears of a Eurozone exit.
Paramount and Skydance Merger
In a significant media industry development, Paramount Global announced its merger with Skydance Media. This $4.75 billion deal marks the end of Shari Redstone’s control of Paramount, as Skydance’s David Ellison steps in as the new leader. The merger aims to bolster Paramount’s presence in the streaming space, with planned cost cuts and strategic reorganization.
Gold Prices and Economic Indicators
Gold prices dropped significantly, shedding $34 amid signs of easing inflation and a contracting U.S. economy. Despite these conditions typically supporting gold prices, market dynamics showed a different trend, possibly due to profit-taking by traders.
Tech Giants Hit Record Highs
Major tech stocks—Apple, Microsoft, Meta, and Google—reached new 52-week highs, demonstrating strong investor confidence. Analysts suggested that among these, Microsoft’s stock showed the most potential for significant upside, despite all four companies exhibiting robust performance and bullish momentum.