Nvidia's financial results await investors in the United States.
Following the anticipation of significant events during midweek, investors on Wall Street are displaying a sense of caution after Whit Sunday. Both the Dow Jones Index and the S&P 500 extended their minimal gains, while the Nasdaq Composite rose 0.2% to achieve a record high during trades. With Wednesday's upcoming publication of the US Federal Reserve minutes and Nvidia's (+0.6%) quarterly results serving as crucial factors within the technology sector, investors remain cautious due to the absence of any fresh motivators that day. The Dow Jones Index accrued an additional 0.2% to 39,873 points, the S&P 500 attained a rise of 0.3%, and the Nasdaq Composite garnered 0.2%. There were 1267 (Monday: 1405) price gainers and 1552 (1383) price losers on the NYSE, alongside 57 (94) stocks that ended the day without any change.
The anticipation of interest rate cuts has faced a setback after declarations from the US Federal Reserve. On Monday, Loretta Mester, the president of the Cleveland branch of the US Federal Reserve, expressed reservations with respect to interest rate cuts earlier in the year. Originally, Mester believed in three interest rate cuts for the current year, yet she has now voiced her doubts. Mester highlighted the emergence of risks pertaining to inflation and added that the economic landscape is "a bit stronger than I anticipated."
Fed Governor Christopher Waller further echoed these sentiments, expressing that the timing for interest rate cuts has not yet arrived. In line with combating inflation, the US Federal Reserve's progress continues. Nevertheless, "a few more months of solid inflation data" are necessary, according to Waller, before the possibility of an interest rate cut can be considered seriously. Consequently, investors are remarkably fixated upon the reading of the Fed's final meeting.
Tesla stock rises
Elsewhere in the realm of individual stocks, shares in Tesla appreciated by 6.7 percent. A faction of Tesla shareholders have petitioned other investors to reject Elon Musk's disputable $46 billion compensation package. This group, which involves New York City Comptroller Brad Lander, has communicated with other investors on rejecting Musk's pay package as well as the possibility of reelecting two electric automaker board members. The group contended that the board had a close connection to Musk and had failed to assess the remuneration accurately.
The retail sector consumed focus with its quarterly statistics. Stocks of Macy's soared by 5.1 percent. The largest department store operator in the US outshone expectations with its results in the first quarter. The projection for the entire year was marginally bolstered. In contrast, Lowe' s shares reduced by 1.9 percent, despite the retail group recording outcomes that surpassed estimates in the initial quarter. The outlook for the year as a whole, however, remained unchanged.
Dollar stays level - oil slips more significantly
The dollar exhibited sluggish movement within the foreign currency trade. The dollar index inched up 0.1 percent. Market participants attributed this to a lack of stimulus and a prevailing sense of caution in anticipation of the Fed's upcoming minutes. Despite disparities in the interest rate projections of the most significant central banks, these discrepancies lacked the intensity to incite notable movements on the foreign exchange market, according to MUFG analyst Derek Halpenny. It is anticipated that market volatility will stay subdued if the US Federal Reserve does not hint at additional rate increases.
Crude oil prices dropped further following Monday's losses. Prices for WTI and Brent fell by up to 1.0 percent. Market participants connected these declines to demand concerns. Furthermore, focus shifted to next month's Opet+ oil cartel meeting, through which production levels for the latter half of the year will be decided.
Gold prices dipped slightly following reaching a new record high at the beginning of the week, with the cost per troy ounce falling by 0.1% to $2,423.
The yield on the bond market reduced after prior upward shifts. Notwithstanding this, they stayed within the range that has persisted for months, according to reports. US economic data due to be disclosed in the coming week is unlikely to deliver additional evidence concerning the Federal Reserve's forthcoming interest rate policy. In contrast, the Fed minutes offer the potential for further clarity.
Read also:
- Lack of snow also opens up new opportunities for winter tourism
- Abrupt end to e-car subsidies
- The chemical industry has little confidence
- Intersport boss hopes for sales boom through sporting events
As the Fed's interest rate policy remains uncertain due to inflated concerns about inflation, investors are closely watching Nvidia's quarterly results, hoping for a positive impact on share prices, especially in the tech sector. Despite Tesla Motors' shares appreciating by 6.7%, a group of shareholders has urged other investors to reject Elon Musk's large compensation package, questioning the board's close relationship with Musk and their assessment of the remuneration.
Source: www.ntv.de
