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29.10.202407:07 Forex Analysis & Reviews: Boeing Falls, Russell 2000 Gains: How Wall Street Reacts to Weekly News

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Exchange Rates 29.10.2024 analysis

Wall Street Up at Start of Busy Earnings Week

The U.S. stock market ended the day in the green on Monday amid growing optimism ahead of a flurry of earnings from major corporations and the final push before the November 5 presidential election. Investor confidence was boosted by the fact that energy supplies remain stable despite the escalation in the Middle East, which has not affected critical infrastructure.

Israel's Response: Focus on Defense Facilities

Israel's response to the Iranian attack earlier this month focused on military plants and strategic sites near Tehran, leaving refineries and nuclear facilities out of the strike zone. That caution has reduced the risk to global oil supplies and provided reassurance to investors worried about the impact of geopolitical tensions on the energy sector.

Earnings Week: Markets Await the Magnificent Seven

This week's key event will be the release of quarterly earnings reports from 169 companies in the S&P 500, including many of the tech leaders. Investors are particularly focused on the so-called "Magnificent Seven" — the tech giants that have driven the market to record highs. Alphabet, Meta, and Apple are set to report results in the coming days, fueling speculation about further gains.

The major indexes gained steadily on Monday, with the S&P 500 up 15.4 points (+0.27%) to 5,823.52; the Nasdaq Composite up 48.58 points (+0.26%) to 18,567.19; and the Dow Jones up 273.17 points (+0.65%) to close at 42,387.57.

Nvidia Overtakes Apple, AI Remains in Focus

Last week was a big one, with Nvidia overtaking Apple in market value to become the world's most valuable company. Investors are now eagerly awaiting data on AI spending, which could play a key role in the tech sector's performance given the huge expectations for AI in the coming years.

Corporate Earnings: A Look Ahead

"Earnings reports will be key to understanding what capital expenditures companies can afford to make next year," said Paul Christopher, head of global investment strategy at Wells Fargo Investment Institute. Corporate executives will be disclosing their plans for the future, which will be an important guide for investors. Microsoft and Amazon, in particular, will be in the spotlight this week when they report results.

Small Caps Take the Lead

The Russell 2000 index, which tracks small-cap companies, rose 1.63% today, outperforming the major indexes. The jump underscores investors' appetite for riskier assets as larger companies focus on earnings.

Energy Slips, Financials Gains

As crude oil prices fell 5%, the energy sector took a hit, falling 0.65%. The easing of concerns over oil supplies has dampened interest in energy, while financials have been the most dynamic sector, demonstrating the attractiveness of banking and insurance assets in the current economic environment.

Market Optimism: Stocks Rise

The New York Stock Exchange was dominated by gainers today, with nearly two gainers for every one that fell (a ratio of 1.88 to 1). An impressive number of stocks reached new highs, with the NYSE recording 147 new records and 41 new lows. The S&P 500 posted 15 new yearly highs and 2 new lows, while the Nasdaq Composite posted 101 new highs and 67 new lows.

Economic Data: What to Expect from the Fed

Markets will be watching economic data closely this week, especially the Consumer Price Index (CPI) due out on Thursday. The data is critical for the Federal Reserve as it is an indicator of inflation and could influence its future policy.

Presidential Election: A New Chapter or Continuation of Politics?

With the presidential election approaching, investors are keeping a close eye on the political situation in the United States. Despite the close forecasts, markets are considering the possibility of a second Donald Trump administration, adding an additional layer of uncertainty to the investment strategy for the coming years.

Boeing Seeks Funding as Shares Fall

Aircraft giant Boeing shares fell 2.8% after the company said it would raise up to $22 billion in additional funding. The funds are expected to support Boeing as it struggles financially with an ongoing labor strike that is having a significant impact on its business.

3M Supports Dow with JP Morgan

3M shares jumped 4.4%, providing significant support to the Dow. The gains came after analysts at JP Morgan raised their price target for the industrial conglomerate, boosting investor optimism and adding to the positive sentiment in the market.

Japanese Yen Hits Lows

The yen fell to a three-month low against the US dollar. The moves came amid political instability in Japan following the recent elections, which left the country in a state of political uncertainty that has spilled over into the currency market.

US Jobs Report: Key Data on the Horizon

Markets are eyeing US jobs data for October on Friday. The economy is expected to add 123,000 jobs and the unemployment rate will remain steady at 4.1%. The report will be a key indicator of the health of the economy ahead of the presidential election in a week.

The White House Race: In the Homestretch

Ahead of the US presidential election, polls show a tight race, with Vice President Kamala Harris holding a narrow lead over Donald Trump, 46% to 43%, according to a national survey. The November 5 vote is expected to be one of the closest and most unpredictable in recent memory.

Bond Yields Peak: Election and Data Awaiting

With political and economic data in the air, the yield on the US 10-year Treasury note has hit a three-month high. On Monday, the yield rose 4.4 basis points to 4.274%, indicating a growing appetite for longer-dated assets ahead of the election and more economic data.

'Calm before the storm' on Wall Street

"We are experiencing a kind of calm before the storm," is how Subadra Rajappa, head of US rates strategy at Societe Generale, described the current situation. According to her, investors have become cautious ahead of the presidential election, trying to minimize risks.

Oil falls: calm in the Middle East supported prices

Oil prices fell sharply as fears of an escalation in the Middle East eased. Brent crude futures closed at $71.42 a barrel, down 6.09%, or $4.63. American WTI crude also fell, by 6.13% or $4.40, to close at $67.38 per barrel. The decline put pressure on energy stocks, and the S&P 500 energy sector ended the day down 0.7%, although the major indices remained in positive territory.

Truth Social shares soar

Shares in Trump Media & Technology Group, the owner of the Truth Social platform, jumped 21.6% on Monday, continuing their recent rally. Interest in the company is growing in light of the upcoming elections and increased attention to media assets associated with Donald Trump.

Global markets are on the rise

Global markets also saw growth, with the MSCI index for world shares rising by 0.29%, or 2.44 points, to close at 847.93. The European STOXX 600 index also ended the day up 0.41%, reflecting positive investor sentiment in the global market.

Yen under pressure: political instability in Japan

The Japanese yen continues to remain under pressure due to political changes in the country. The results of the latest elections have weakened the ruling coalition, and this brings significant uncertainty to the political course and monetary policy. The Liberal Democratic Party of Japan lost its parliamentary majority, leaving the country with 215 seats in the lower house instead of the required 233, which has presented the country with new challenges in governance and financial policy.

Dollar strengthens against the yen

The dollar against the yen shows significant gains, rising 1% to reach 153.88, which was the yen's lowest value since late July. Later, the dollar corrected slightly, ending the trading session up 0.64% at 153.28. This reflects the continued interest in the dollar despite the instability that has gripped the Japanese currency following the country's political changes.

Dollar under pressure: rate against world currencies

The dollar index, which tracks its value against a basket of major world currencies, showed a slight decline of 0.08%, reaching 104.30. At the same time, the euro strengthened by 0.19%, reaching $1.0813. These indicators indicate the complex dynamics of currency markets against the backdrop of global political and economic factors, as well as the delicate balance between the American and European currency blocs.

Desarrollado por un Thomas Frank
experto de análisis de InstaForex
© 2007-2024

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