NASDAQ Composite Makes New All-Time
The NASDAQ Composite index is one of the last indices to make a new all-time high this year. Slowing inflation is creating higher hopes of a Fed pivot point in 2024 fueling the rally.
The S&P 500 also reached a new all-time high today along with the NASDAQ 100. But the NASDAQ Composite has taken a little longer than the other major indices which already reached new highs yesterday.
The composite surpassed its previous all-time high from November 2021, reaching an intraday high of 18247. A lot of fuel for this momentum has come from the perception that the Fed is more likely to cut rates this year.
This new hope for Fed action stems from a slower rate of inflation and an economy that’s slowing. Today’s figure for lower-than-expected ISM data also helped add a dose of extra gasoline to the stock market engine.
June seems to be the month most bets are on, and the number of punters seems to be growing. The Fed Funds futures probability calculation shows a 0.25% cut for June is now at 58.5% compared to 52.3% yesterday.
So, I expect the US stock market to continue higher, especially with subdued economic data, until at least May or June. Notice how despite a drop in ISM numbers, the market actually rallied in anticipation of getting closer to the Fed pivot point.
Another large factor for the rise of tech indices has been the surge in $NVDA, which has increased around 260% over the past 12 months. Other tech stocks are also leading the way, $META was up a promising 2% on the day.
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