Oil prices fell on Wednesday as a surge in inventories overshadowed demand optimism and supply concerns. However, there was little volatility as US markets were closed for a holiday. According to American Petroleum Institute figures, crude inventories rose by 2.264 million barrels last week. Meanwhile, economists had expected stocks to fall by 2.2 million barrels. Read More…
Federal Reserve and Monetary Policy The Federal Reserve has maintained its policy rate at 5.25%-5.5%, with potential rate cuts anticipated in the latter half of 2024. This cautious stance is driven by mixed economic signals and the need to monitor inflation trends closely. While there has been some moderation in inflation, core inflation, particularly in Read More…
Gold prices rose on Tuesday after poor US economic data raised the likelihood of a rate cut in September and weighed on the US dollar. However, the move was subdued because the market is awaiting more significant data. US retail sales (Source: US Census Bureau) Data on Tuesday showed that US sales barely rose in Read More…
What is leading the underperformance? The Russell 2000 is less weighted in technology stocks compared to the S&P 500 and Nasdaq. Large-cap tech stocks have driven much of the recent market gains, benefiting indices heavily weighted in these sectors. Small-cap stocks, which dominate the Russell 2000, are more susceptible to economic uncertainties too. In contrast, Read More…
Equities soared on Monday, with the S&P 500 and the Nasdaq reaching record highs. This increase came from technology stocks, which rallied on AI optimism. At the same time, investors were awaiting more clues from policymakers and economic data on the outlook for US rate cuts. S&P 500 index (Source: Bloomberg) Shares of major technology Read More…
Currency futures fell as the dollar rose amid increased safe-haven demand due to political uncertainty in the Eurozone. However, some currencies, like the Canadian dollar, defied this trend due to upbeat domestic data. It was a bearish week for the euro as investors dumped the currency after the announcement of a snap French election. French Read More…
Understanding the Recent Surge in NASDAQ and US Equity Markets Over the past week, the NASDAQ and other US equity markets have surged. This rally can be attributed to favorable economic data, strong corporate earnings, historical market patterns, and legislative support. One of the primary drivers behind the market’s recent strength is the softer inflation Read More…
Interest futures surged Thursday while Treasury yields fell to new lows in the month due to increased bets for a Fed cut in September. Prices are heading for a bullish week marked by softer US consumer and producer inflation numbers. Interest futures reversed most gains last week on Friday when the US released a blockbuster Read More…
Introduction Crude Oil Futures (CL) dropped dramatically for five straight sessions last week. CL dropped a total of 10.5% from the high of Wednesday 5th in those five days. There was a support level at around $76 that was taken out which is likely what lead to the sharp decline but the story changed quickly. Read More…
Oil prices rose on Wednesday amid ongoing tensions in the Middle East and softer-than-expected US inflation data. However, a slightly hawkish Fed policy meeting at the end of the day capped gains. The ceasefire talks led by the US in the Middle East experienced challenges as Hamas made some unreasonable demands. As a result, this Read More…
