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The SNP500 Renews Its All-Time Highs As Chinese Data Rebounds!

The USA500 starts the day with a moderate bullish impulse wave but loses momentum and trades sideways thereafter. The index is currently trading 0.41% higher than the most recent close. The price of the index is now trading at an all-time high and has risen more than 10.50% in 2024. The SNP500 has also been the best performing index in 2024 and has outperformed both the NASDAQ and Dow Jones. However, the index does offer a lower annual dividend yield.

One favorable aspect for the USA500 is the anticipated action by the Federal Reserve and other major central banks to begin reducing interest rates at some stage within this year. A crucial aspect for investors to observe is that these central banks managed to take this step without causing a notable economic downturn, a goal successfully attained. Additionally, another positive aspect is that the Core PCE Price Index did not surpass expectations, which is crucial given that inflation has been consistently higher than previously estimated for the past two months.

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However, some risks do remain which can make the path difficult for individuals looking to speculate the price increase. The price of Gold as well as the US Dollar continue to rise. This occurrence indicates the market’s risk appetite and sentiment is lower than priced in the stock market. Another concern is whether the Federal Reserve will be able to indeed cut interest rates in July 2024 if inflation does not decline over the next 2 months.

Investors are closely watching the price of oil which is trading 13.50% higher in 2024 and at a 6-month high. If the price of Oil continues to rise and fails to fall back below $80.00 per barrel in the next two months, inflation will be difficult to reduce. As a result, the Fed may again push back a rate cut to July or September. Otherwise, the Fed may continue with a cut in June, but will advise less than 3 cuts for the remainder of the year.

Investors are worried about Apple stocks due to hefty EU penalties and an impending US lawsuit. They eagerly await the board’s response and its impact on earnings per share. The performance of the Apple Vision Pro Headset, launched in February, is also crucial. If sales meet or exceed expectations, stock demand may rise despite looming fines. Additionally, Apple plans to globally release the product in the summer. Keep an eye on Apple’s quarterly earnings on May 2nd and Microsoft’s on April 23rd.

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Michalis Efthymiou
HFM’s Market Analyst
Michalis Efthymiou brings over 9 years of extensive experience in the financial services industry across the United Kingdom and Europe. Initially serving as a financial advisor in London for 5 years, he has transitioned into the field of market analysis over the past 4 years.
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