This weeks stock are winning. But it did not look like that on Monday when the stock market reacted to a negative outlook of Moody’s. They said they expect a negative progression of stock because of the rising credit rates of the U.S. The market probably also reacted to tension in the middle east. At the end of the week though, the stocks are rising by a lot. That was due to steady interest rates and a future outlook of the FED-Funds.
The stock market in numbers
First of all the main reason for a rising stock market is because the FED-Fund futures give 71.7% odds that the central bank will keep interest rates steady in the next two Federal Open Market Committee meeting. A big focus will be on inflation rates and retail stores and their earnings.
| S&P 500 | 5.78 Pts. | +0.1% | 4.514,02 |
| DJIA | 1.81 Pts. | +0.1% | 34.947,28 |
| Nasdaq | 11.81 Pts. | +0.1% | 14.125,48 |
Stock market closed with third straight winning week
The S&S 500 is near it’s highest level in 3 months and retailers made strong gains and yielded better results than analysts expected. They had a 30.6% profit and Ross stones climbed 7.2%. Even BJ’s Wholesale had a better week than forecasted even though it fell 4.8%.
Now traders hope that the FED will start cutting interest rates. The FED replied to these hopes and stated that the cuts won’t start just now but is expected to start in Summer 2024.
Recent movements in the economy
Oil prices went up by $2.99 to $75.89 from a sharp loss. It is still well below it’s peak of $93 in September 2023.
In the bond market dipped the yield on 10-year treasury bonds from 4.44% to 4.43% on late Thursday. A few weeks ago it was at an all time high since 2007 with 5%.
The stock indexes are rising strong in Europe while having mixed tendencies in Asia.
All in all the rising stock market has left the investors happy and optimistic for the future. The oil price has stabilized after a rapid fall and the bonds suffered a loss after being at an all time high for more than 15 years.
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