On Wednesday, the stock market showed mixed outcomes, with the Dow Jones and S&P 500 making slight gains, while the Nasdaq Composite faced a decline, influenced by anxiously awaited Nvidia earnings and Federal Reserve insights. Nvidia’s stock dipped ahead of its fiscal report, reflecting investor concerns over its valuation after a significant year-long surge. The market also reacted to Palo Alto Networks’ and SolarEdge Technologies’ disappointing forecasts, alongside the Fed’s minutes indicating a cautious stance on interest rate cuts, emphasizing inflation control. Currency markets saw fluctuations, with the dollar index falling amidst complex global yield dynamics and central bank policies, highlighting the intricate interplay between economic signals, corporate earnings, and monetary policy expectations.

Stock Market Updates

The stock market experienced mixed results on Wednesday, with the Dow Jones Industrial Average slightly gaining by 48.44 points to close at 38,612.24 and the S&P 500 also up by 0.13% at 4,981.80. In contrast, the tech-heavy Nasdaq Composite fell by 0.32%, continuing its downward trend for the third consecutive session, to end at 15,580.87. The market’s attention was particularly focused on Nvidia, ahead of its fiscal fourth-quarter earnings report, amidst growing concerns over the chipmaker’s valuation after its shares surged nearly 230% over the past year. On the day, Nvidia’s stock declined by 2.85%, reflecting investor apprehension about whether it could continue to buoy the market amidst a backdrop of uncertain catalysts for growth.

Market sentiment was further influenced by a combination of corporate news and insights from the Federal Reserve. Palo Alto Networks saw a significant drop of 28.4% after revising its full-year revenue forecast downwards, while SolarEdge Technologies also faced a setback, with its shares falling approximately 12.2% due to weak first-quarter guidance. Adding to the cautious market outlook, minutes from the Federal Reserve’s January meeting revealed a reluctance to cut interest rates anytime soon, emphasizing that any decisions on rate cuts would require greater confidence in the slowing down of inflation. This stance underscores the central bank’s cautious approach to navigating economic signals, leaving the market to look towards corporate earnings and guidance as potential catalysts for future growth.

Data by Bloomberg

On Wednesday, the market witnessed modest gains across most sectors, with the overall sectors index up by 0.13%. The energy sector led the charge, recording a significant increase of 1.86%, followed closely by utilities, which saw a 1.36% rise. Consumer discretionary and real estate sectors both enjoyed gains of 0.72%, demonstrating a healthy appetite for risk among investors. Other sectors such as materials, industrials, financials, consumer staples, health care, and communication services also experienced growth, albeit at a more moderate pace. However, the information technology sector bucked the positive trend, facing a downturn of 0.76%, indicating sector-specific challenges or profit-taking by investors.

Currency Market Updates

The currency market experienced notable fluctuations, with the dollar index declining by 0.9% amid a complex interplay of treasury yields and central bank policies. The increase in Treasury yields, although outpaced by European yields, failed to keep up with the steadiness of Japanese Government Bond (JGB) yields. This dynamic, alongside the diminishing likelihood of interest rate cuts by major central banks such as the Federal Reserve (Fed), the European Central Bank (ECB), and the Bank of England (BoE), exerted pressure on risk appetite. The anticipation surrounding the Federal Reserve’s minutes and Nvidia’s report further influenced market sentiments. Despite the anticipation, the Fed minutes merely echoed previous statements and comments, offering no new impetus for dollar strength. Meanwhile, the USD/JPY pair saw a slight increase, attributed to the static nature of JGB yields which made the yen less attractive compared to its higher-yielding counterparts.

In Europe, the ECB’s stance, as articulated by Pierre Wunsch, suggested a prolonged period of tight monetary policy, given the persistent wage pressures and tight labor markets. This position was mirrored by the market’s adjustment in expectations for rate cuts, with the first ECB rate reduction now fully priced in for June. The euro found some support against the dollar, benefiting from a tightening in the 2-year bund-Treasury yield spreads. However, the recovery of the EUR/USD pair was tempered by technical resistance and a cautious outlook for the BoE’s policy direction, which also impacted the GBP/USD pair. The British pound struggled against the backdrop of rising Gilts-Treasury yield spreads and comments from BoE officials emphasizing the cost of delayed rate adjustments. These developments underscore the intricate balance of yield dynamics, central bank policies, and economic indicators shaping the currency markets, with implications for the path of the dollar and its major counterparts.

Picks of the Day Analysis

EUR/USD (4 Hours)

EUR/USD Stabilizes Amid Speculations of Fed Rate Cuts

The EUR/USD pair exhibited slight fluctuations, stabilizing around the 1.0800 mark, amidst a backdrop of uncertain US dollar movements and anticipations of Federal Reserve interest rate adjustments. This period of inconclusive price action follows a recent surge to 1.0840, driven by speculations and marginal gains in US bond yields, hinting at possible Fed rate cuts later in the year. Market probabilities lean towards a rate reduction by the Fed, with a 30% chance in May, escalating to 53% in June. Concurrently, the European Central Bank (ECB) faces its rate decision pressures, amidst improved consumer confidence in the Eurozone and ongoing discussions on monetary easing, setting a complex stage for the EUR/USD dynamics as both regions navigate through inflationary pressures and economic forecasts.

Chart EUR/USD by TradingView

On Wednesday, the EUR/USD moved higher and was able to reach near the upper band of the Bollinger Bands. Currently, the price is moving just below the upper band, suggesting a potential upward movement to reach the upper band. Notably, the Relative Strength Index (RSI) maintains its position at 65, signaling a bullish outlook for this currency pair.

Resistance: 1.0845, 1.0896

Support: 1.0783, 1.0723

XAU/USD (4 Hours)

XAU/USD Trajectory Amidst Dollar Strength and Anticipation of FOMC Minutes

As the US Dollar gained momentum with Wall Street’s opening and before the release of the Federal Open Market Committee (FOMC) Minutes, gold prices (XAU/USD) were influenced by a complex interplay of factors. The anticipation surrounding the FOMC minutes, detailing reasons for holding interest rates steady in early 2024, and Chairman Jerome Powell’s remarks on the unlikelihood of a March rate cut, set a cautious tone in the market. Despite recent employment and inflation data backing the Federal Reserve’s wait-and-see approach, shifting rate-cut expectations to June from May, the overall mixed performance of the dollar amidst a lackluster risk appetite and struggling global equities highlights a potentially volatile environment for gold as investors digest these economic cues.

Chart XAU/USD by TradingView

On Wednesday, XAU/USD moved back lower to reach the middle band after reaching near the upper band of the Bollinger Bands. Currently, the price is moving just above the middle band, suggesting a potential upward movement toward the upper band. The Relative Strength Index (RSI) stands at 58, signaling a neutral with a slightly bullish outlook for this pair.

Resistance: $2,030, $2,042

Support: $2,017, $2,004

Economic Data

CURRENCIES:

• Top of Form U.S. Dollar Performance Pre-Fed Minutes: The U.S. dollar experienced a slight decline due to subdued U.S. yields, with a lack of significant market drivers on Tuesday.
• Anticipation for FOMC Minutes Release: Market volatility is expected to increase with the upcoming release of the FOMC minutes, which could shed light on the Fed’s inflation outlook and potential timing for rate cuts.
• Fed’s Stance on Rate Cuts: Recent statements by Fed officials suggest a cautious approach to immediate rate cuts, which could lead to higher U.S. Treasury yields and strengthen the dollar.
• Potential Market Reactions: If the FOMC minutes indicate a possibility of earlier easing, it may result in lower yields and a weaker dollar, whereas a confirmation of a delayed easing cycle could bolster the dollar.
• Technical Analysis for USD Currency Pairs: The article will focus on the technical analysis of major USD pairs, including EUR/USD, GBP/USD, and USD/JPY, highlighting key price levels for traders.

STOCK MARKET:

• Nvidia’s Q4 earnings are viewed as a crucial test for the AI sector, with expectations for a 234% surge in revenue.
• The company’s stock has seen a remarkable 184% increase over the past year, outperforming rivals like AMD and Intel.
• Despite a brief moment as the third-most valuable company globally, Nvidia was surpassed by Amazon and Alphabet as of the latest update.
• For Q4, projections are set for Nvidia to report earnings of $4.60 per share on $20.4 billion in revenue, a significant jump from the previous year.
• The Data Center segment, fueled by demand for AI, is anticipated to report $17.2 billion in revenue, a dramatic increase from the year before.
• Meta plans to incorporate 350,000 Nvidia H100 chips into its AI data centers by end of 2024, indicating substantial revenue for Nvidia.
• Gaming revenue is also expected to rise, from $1.8 billion to $2.7 billion.
• Forward guidance from Nvidia will be closely watched for indications of sustained AI market strength.
• Analysts have raised their price targets for Nvidia, reflecting optimistic expectations.
• Nvidia faces competition from AMD and Intel in AI chips and challenges from companies developing their own AI chips, including Amazon and Google.
• Nvidia is addressing the threat of customized AI chips by discussing potential collaborations with major tech firms.
• U.S. export restrictions to China pose a challenge for Nvidia, but the company does not anticipate an immediate financial impact.

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On Tuesday, the stock market faced a downturn, heavily influenced by a slump in technology stocks, especially with Nvidia’s earnings report on the horizon, causing its shares to fall by 4.4%. The Dow Jones Industrial Average slightly declined by 0.17%, while more significant drops were observed in the S&P 500 and Nasdaq Composite, decreasing by 0.60% and 0.92%, respectively. This trend reflected broader concerns over the tech sector’s high valuations, with companies like Amazon, Microsoft, and Meta also experiencing losses. Concurrently, major financial transactions grabbed headlines, including Capital One’s acquisition of Discover Financial Services for $35.3 billion and Walmart’s purchase of Vizio for $2.3 billion, both moves sparking notable stock surges. Additionally, currency markets saw fluctuations amid varied economic indicators and policy expectations, affecting the dollar index and EUR/USD pair. These market movements underscore the complexities of sector-specific trends and significant corporate deals, against a backdrop of evolving global economic conditions and monetary policies.

Stock Market Updates

On Tuesday, the stock market experienced a downturn, influenced significantly by a decline in technology stocks, particularly ahead of Nvidia’s earnings report. The Dow Jones Industrial Average saw a slight decrease of 0.17%, closing at 38,563.80, while the S&P 500 and Nasdaq Composite fell by 0.60% and 0.92% respectively. Nvidia’s stock dropped by nearly 4.4% amid concerns over its high valuation despite anticipated strong earnings. This sentiment was echoed across other tech giants, with Amazon, Microsoft, and Meta also recording losses. The tech sector’s valuation, trading at around 30 times forward estimates, has raised doubts about further price-to-earnings (PE) multiple expansion, according to CFRA Research’s chief investment strategist, Sam Stovall.

In addition to the tech sector’s performance, significant financial transactions also captured market attention. Capital One Financial announced its plan to acquire Discover Financial Services in a deal valued at $35.3 billion, which is expected to close between late 2024 and early 2025, causing Discover’s stock to surge by 12.6%. Meanwhile, Walmart revealed its acquisition of TV manufacturer Vizio for $2.3 billion, a move that resulted in a 16% jump in Vizio’s shares and a more than 3% increase in Walmart’s stock following the retailer’s announcement of surpassing quarterly earnings and revenue expectations. These developments highlight the ongoing adjustments within the stock market, influenced by both sector-specific trends and significant corporate deals.

Data by Bloomberg

On Tuesday, the market saw a mixed performance across various sectors with an overall price decline of 0.60% across all sectors. Consumer Staples emerged as the top performer, recording a gain of 1.13%, while Information Technology faced the steepest decline, dropping by 1.27%. Sectors such as Consumer Discretionary and Energy also saw significant losses, decreasing by 1.00% and 0.95% respectively. Other sectors experienced more moderate changes, with Communication Services, Utilities, Real Estate, Materials, Industrials, Financials, and Health Care witnessing declines ranging from -0.11% to -0.40%.

Currency Market Updates

The currency markets have recently experienced fluctuations, notably with the dollar index and the EUR/USD pair both witnessing a rise of 0.27%. This movement came amidst a complex backdrop of economic indicators and policy expectations. On one hand, the U.S. Treasury yields hit a resistance last week, influenced by a mix of conflicting domestic data, including softer Philly Fed and Leading Economic Index (LEI) figures, as well as external factors like China’s rate cut. These developments have somewhat dented the dollar’s strength. Furthermore, the anticipation around the Federal Reserve’s rate cuts for 2024 has seen a significant adjustment, with the market’s expectations dialing down from five to six rate cuts to less than four, aligning more closely with the Fed’s December projections of 75 basis points in cuts.

The detailed dynamics of these currency movements also reflect broader global economic sentiments and policy maneuvers. For instance, the EUR/USD rally on Tuesday was noteworthy, overcoming key resistance levels and indicating a potential shift in market sentiment. Meanwhile, the USD/JPY pair’s movements have been influenced by the Treasury-Japanese Government Bond (JGB) yield spreads, alongside speculations around the Bank of Japan’s policy directions and their implications for the currency pair. Additionally, the broader implications of these currency shifts, alongside upcoming economic data releases like global flash PMIs and U.S. jobless claims, are keenly awaited by the markets. They are expected to provide further clarity on the U.S. economic performance and its impact on currency valuations, especially as investors and analysts parse through the Fed’s upcoming meeting minutes for insights into future rate adjustments.

Picks of the Day Analysis

EUR/USD (4 Hours)

EUR/USD Peaks Amid Speculation on Fed Rate Decisions

The EUR/USD pair reached a new high since early February, closing near 1.0800, as it gained from the widespread weakness of the US Dollar. This shift was largely influenced by market speculation that the Federal Reserve might postpone interest rate cuts, with expectations for a May reduction significantly dropping post the latest Fed meeting. Despite a light economic calendar, the euro found additional support from positive data releases like the EU Current Account surplus and an increase in Construction Output. Investors now await the FOMC Meeting Minutes for further direction on the Fed’s rate policy outlook.

Chart EUR/USD by TradingView

On Tuesday, the EUR/USD moved higher and was able to reach the upper band of the Bollinger Bands. Currently, the price is moving just below the upper band, suggesting a potential slight downward movement to reach the middle band before it goes back higher. Notably, the Relative Strength Index (RSI) maintains its position at 62, signaling a neutral but bullish outlook for this currency pair.

Resistance: 1.0845, 1.0896

Support: 1.0783, 1.0723

XAU/USD (4 Hours)

XAU/USD Hits Week-High as US Dollar Weakens Amid Rate Speculation

Spot Gold (XAU/USD) continues its ascent, marking a fourth day of gains by reaching around $2,030, a peak not seen in over a week. This surge comes as the US Dollar weakens, driven by increasing speculation that the Federal Reserve will maintain elevated interest rates longer than some investors expected. Despite the resilient US economy, bets against the Fed’s intentions have been cautioned against by officials, shifting market expectations towards a later rate adjustment, now more heavily anticipated in June rather than March. Meanwhile, Wall Street experiences a downturn, though mitigated by some positive earnings reports, and a recovery in government bond yields further pressures the USD, contributing to Gold’s upward momentum.

Chart XAU/USD by TradingView

On Tuesday, XAU/USD moved back lower after reaching the upper band of the Bollinger Bands. Currently, the price is moving between the upper and middle bands, suggesting a potential downward movement toward the middle band. The Relative Strength Index (RSI) stands at 59, signaling a neutral but bullish outlook for this pair.

Resistance: $2,030, $2,042

Support: $2,017, $2,004

Economic Data

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CURRENCIES:

• Top of FormEuro’s Minor Decline: In a holiday-affected market, the Euro slightly dropped against the US Dollar.
• Persistent Downtrend: The Euro continues its year-long downtrend.
• Anticipation for German PMI: Market eyes are on Germany’s PMI data release this week, which could influence movement.
• US Market Closure: The US market was mostly inactive due to Presidents’ Day, with significant trading expected to resume later in the week.
• Upcoming Fed Minutes: Federal Reserve’s last meeting minutes are due Wednesday, potentially impacting market despite shifted rate-cut expectations to June.
• German Economic Indicator: Thursday’s German Purchasing Managers Index (PMI) is forecasted to show continued manufacturing contraction, potentially affecting the Euro.
• ECB’s Rate Decision: High interest rates remain as the European Central Bank (ECB) awaits clearer signs of inflation control, with no immediate rate cuts expected.

STOCK MARKET:

• Earnings: Barclays (BCS), Caesars Entertainment (CZR), Diamondback Energy (FANG), Home Depot (HD), KBR (KBR), Medtronic (MDT), Palo Alto Networks (PANW), Teladoc Health (TDOC), Toll Brothers (TOL), Walmart (WMT).
• Economic news: Philadelphia Fed Non-Manufacturing Activity, February (-3.7 previously); Leading index, January (-0.3% expected, -0.1% prior).
• Nvidia’s Earnings Report: Nvidia’s earnings, significant for its AI leadership, are set for release on Wednesday, marking a pivotal moment in a shortened trading week due to the Presidents’ Day holiday.
• Market Recovery and Performance: Despite a dip from an unexpected inflation report, the S&P 500 hit a record high, while the Dow Jones and Nasdaq experienced slight movements.
• Economic Data’s Impact: Recent CPI, PPI, and retail sales data have challenged the soft-landing narrative, affecting investor sentiment regarding Federal Reserve rate cuts.
• Investor Sentiment Shift: Expectations for the Fed’s interest rate cuts have been adjusted, with a June cut now more likely than earlier anticipated.
• Broader Market Outlook: Despite challenges, the overall market narrative remains unchanged, with AI stocks surging and a general expectation for policy recalibration within the year.

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Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

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With U.S. markets closed in observance of Presidents Day, global financial markets took center stage, showcasing mixed sentiments across different regions and sectors. Europe’s Stoxx 600 index saw a modest rebound, while Asian markets presented a mixed picture, influenced by the People’s Bank of China’s policy decisions and optimistic travel data from China. Meanwhile, the currency and commodity markets remained relatively stable, with minor movements in major currency pairs and commodities like gold seeing a slight rise. Key economic events, including policy decisions from the Reserve Bank of Australia and the People’s Bank of China, along with Canada’s CPI report, are highly anticipated by investors, potentially setting the tone for future market movements.

Stock Market Updates

The U.S. markets were closed on Monday in observance of Presidents Day, leading to a day where international markets garnered more attention. In Europe, the Stoxx 600 index managed a modest recovery, ending the day by 0.17%, a slight rebound from its negative performance in the morning session. Sector-wise, there was a mixed picture; mining stocks experienced a downturn, dropping by 1%, whereas healthcare stocks moved in the opposite direction, recording a gain of 0.95%. This divergence highlights the varied investor sentiments across different sectors within the European stock market landscape.

In company-specific news, shares of the Swiss software firm Temenos saw an impressive jump of 8.8%, bouncing back from the significant losses it suffered following a negative report from Hindenburg Research. On the other side of the globe, in the Asia-Pacific region, the stock market outcomes were mixed. Chinese markets showed optimism as traders returned from the Lunar New Year holidays, encouraged by promising travel data, while the Hong Kong stock market faced a downturn. The monetary policy stance of the People’s Bank of China, which held a key policy rate steady, also played a crucial role in shaping market expectations, especially in a global context where the timing of the U.S. Federal Reserve’s policy easing remains a focal point of speculation.

Data by Bloomberg

On Friday, the overall market saw a slight downturn, closing down by 0.48%. Despite the general negative sentiment, some sectors managed to post gains, with Materials leading the way with a 0.51% increase, followed by Health Care and Consumer Staples, which rose by 0.29% and 0.16%, respectively. On the flip side, the Communication Services sector faced the steepest decline at -1.56%, and Real Estate and Information Technology also experienced significant losses, dropping by -0.99% and -0.79% respectively. Other sectors such as Energy and Utilities saw marginal decreases, while Financials, Consumer Discretionary, and Industrials also ended the day in the red, highlighting a mixed but overall bearish performance across the market. Adding to the context, the US market was closed on Monday, suggesting that these movements were the last recorded before a day of inactivity in the trading sessions.

Currency Market Updates

In the recent currency market updates, major currency pairs have shown minimal movement, adhering to their familiar trading ranges, influenced by the holiday closures in the United States and Canada. Despite this lull, a cautious optimism permeated the financial markets, reflected in the performance of some European and Japanese stock indexes as they neared record highs. The Euro to US Dollar (EUR/USD) exchange rate remained just below the 1.0800 mark, while the British Pound to US Dollar (GBP/USD) hovered around 1.2600. The GBP gained momentum during the European trading session, although it saw a slight retreat before the day’s end. Meanwhile, the US Dollar saw modest gains against traditionally safe-haven currencies such as the Swiss Franc (CHF) and the Japanese Yen (JPY), hinting at a buoyant mood within the financial markets.

On the commodity front, the Australian Dollar recorded a slight increase against the US Dollar, with the AUD/USD pair trading near 0.6540. In contrast, the Canadian Dollar depreciated against its US counterpart, approaching the 1.3500 level. These movements come ahead of significant macroeconomic events slated for early this week. The Reserve Bank of Australia (RBA) is expected to release its Meeting Minutes, which market participants will scrutinize for indications on future monetary policy, especially concerning inflation control and rate adjustments. Additionally, the People’s Bank of China (PBoC) is set to announce its decision on interest rates, specifically the Loan Prime Rate (LPR), which could influence global financial sentiments. Meanwhile, Canada’s upcoming Consumer Price Index (CPI) report for January is anticipated to show a 0.4% month-over-month increase, potentially impacting the CAD’s performance. Furthermore, spot Gold has seen a rise for three consecutive days, briefly surpassing the $2,020.00 mark, adding another layer of complexity to the market dynamics as investors await these critical economic updates.

Picks of the Day Analysis

EUR/USD (4 Hours)

EUR/USD Sees Limited Movement Amid Quiet Macro Calendar and Mixed Market Sentiment

On Monday, the EUR/USD pair experienced limited investor engagement, ending the day with slight gains in the 1.0780 area, amidst a narrow trading range. The lack of significant macroeconomic data and the closure of US and Canadian markets contributed to the subdued activity. While the US dollar showed general weakness against a backdrop of mixed stock market performances, optimism in some Asian and European stock indexes did not translate into a clear direction for FX traders. The Euro’s muted response followed the Deutsche Bundesbank’s report suggesting a recession in Germany, attributed to weak demand and cautious investment. Looking ahead, a light macroeconomic calendar and anticipation for the Federal Open Market Committee (FOMC) meeting minutes release are likely to influence future trading dynamics, with the market seeking clues on monetary policy amidst recent inflation developments.

Chart EUR/USD by TradingView

On Monday, the EUR/USD moved in consolidation, fluctuating between the middle and upper bands of the Bollinger Bands. Currently, the price is moving slightly above the middle band, suggesting a potential slight upward movement to reach above the upper band. Notably, the Relative Strength Index (RSI) maintains its position at 52, signaling a neutral outlook for this currency pair.

Resistance: 1.0796, 1.0830

Support: 1.0745, 1.0713

XAU/USD (4 Hours)

XAU/USD Gains Amidst Dollar Weakness and Mixed Market Sentiments

In Monday’s trading session, Gold (XAU/USD) saw an uptick, advancing to $2,023.04 a troy ounce in the first half, driven by a diminishing demand for the US Dollar before settling around $2,016 after the Dollar regained some strength. The broader financial markets experienced subdued volatility, attributed to holidays in Canada and the US, and a light macroeconomic calendar. Despite this, Asian and European markets offered mixed signals, with Chinese stocks gaining post-holiday and the Nikkei 225 nearing record highs before closing lower. European markets ended mixed but close to record levels. The financial landscape is currently absorbing recent US inflation data, which exceeded expectations, reducing the likelihood of an imminent rate cut by the Fed, with markets eagerly awaiting the upcoming FOMC Meeting Minutes for further direction.

Chart XAU/USD by TradingView

On Monday, XAU/USD moved lower after reaching the upper band of the Bollinger Bands. Currently, the price is moving between the upper and middle bands, suggesting a potential downward movement toward the middle band. The Relative Strength Index (RSI) stands at 54, signaling a neutral outlook for this pair.

Resistance: $2,023, $2,038

Support: $2,010, $1,997

Economic Data

CURRENCIES:

Overview of Market Trends for the Week Ahead:

• US stock indices and gold prices recovered their losses following concerns over US inflation.
• Persistent inflation at the producer and consumer levels in the US didn’t deter the stock indices, which remained close to multi-year highs.

Inflation and Market Reactions:

• This week’s US inflation data drove Treasury yields and the US dollar up as markets adjusted expectations for US interest rate cuts.
• Above-expected US CPI and PPI figures boosted the US dollar, initially causing a decline in US indices. However, these effects were largely reversed by the week’s end, stabilizing most markets.

Market Volatility and Recovery:

• The VIX chart showed mid-week volatility with a significant rise post-US CPI announcement, which was later mitigated in the following days.
• Despite fluctuations, US indices closed the week near their recent highs.

International Market Performance:

• The FTSE 100 stood out by performing strongly against its global counterparts, supported by positive UK economic data and a slight rise in the US dollar, benefiting from the fact that around 70% of its company earnings are generated overseas.

STOCK MARKET:

• Goldman Sachs raises S&P 500 target to 5,200 due to profit expansion.
• The firm increased its forecast following the stock market surpassing the 5,000 milestone.
• This marks the second time Goldman Sachs has updated its S&P 500 target for 2024.
• The new target suggests a 3.9% increase from the current level, adjusting the forecast up from 5,100 to 5,200.
• Initially, Goldman Sachs predicted the S&P 500 would reach 4,700 by year-end.
• Goldman’s 5,200 target now aligns with optimistic projections from Wall Street analysts like Tom Lee and John Stoltzfus.
• The firm also revised its earnings-per-share forecast for the S&P 500, anticipating stronger growth in tech and communication sectors.
• Despite the upward revision, Goldman Sachs expects valuation multiples to stay near present levels, emphasizing earnings growth as the key to further gains.
• The S&P 500 has seen a 4.9% increase this year, driven by Federal Reserve policy shifts and AI-driven tech stock rallies.
• Wall Street peers, including Bank of America, consider raising their targets, suggesting the median S&P 500 forecast might be too conservative.
• Even bearish analysts like Morgan Stanley’s Michael Wilson acknowledge the potential for broader market gains, though Wilson’s target implies a potential decline.

Start your CFD Shares Trading journey with VT Markets now!

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact [email protected].