Spreads
Spreads
Spreads
Spreads
Spreads
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
On Thursday, the US stock market closed higher due to solid earnings from Meta Platforms, which boosted tech-related companies. The Dow Jones Industrial Average increased by 1.57% to 33,826.16, the Nasdaq Composite rose 2.43% to 12,142.24, and the S&P 500 climbed 1.96% to 4,135.35. It was the best day since January for the Dow and S&P 500 and since March for the Nasdaq. Meta shares surged by 13.9% following its better-than-expected quarterly revenue report, and several analysts raised their price targets for the company. Other tech-related companies such as Amazon, Alphabet, Microsoft, and Apple also experienced gains.
Despite weaker-than-expected GDP data, which suggested that the Federal Reserve could wrap up its tightening campaign soon, the stock market continued to rise. The US economy grew 1.1% in the first quarter, while economists had predicted an expansion of 2%. Honeywell, an industrial bellwether, rose by more than 4% due to its better-than-expected quarterly report. However, Caterpillar, another barometer of the global economy, fell by around 0.9% as investors feared a build-up in inventory suggested a slowdown in demand. The Dow and S&P 500 were slightly above their flatlines for the week-to-date, while the Nasdaq gained 0.6% over the same period. However, the Nasdaq has lagged month-to-date, shedding 0.7%, while the Dow and S&P 500 rose 1.7% and 0.6%, respectively, since April began. The Fed is expected to announce its latest policy decision next week.
On Thursday, all sectors in the US stock market experienced gains, with the communication services sector leading at 5.53% and the energy sector having the smallest increase at 0.44%. The consumer staples and healthcare sectors had modest gains at 1.04% and 0.51%, respectively, while the information technology sector rose by 2.17%. Overall, the stock market increased by 1.96%.
Major Pair Movement
On Thursday, the US dollar index remained mostly unchanged, increasing by only 0.08%, as the market focused on strong performances by tech companies with better-than-expected earnings reports. Investors are also looking ahead to the end of the week and the end of April and next week’s FOMC meeting, which could provide new direction from the Fed after a slowdown in interest rate hikes.
During the Asian session, the EUR/USD pair rebounded above 1.1030 with support from buying interest at the psychological level of 1.1000, aided by a correction in the US Dollar Index (DXY). The Federal Reserve is expected to raise rates by 25bps next week, followed by two 25bp cuts by the end of the year, while the ECB is fully priced for a 25bp hike in its May 4 meeting, followed by two more 25bp hikes by September, with no real rate cuts until 2024. The UK’s inflation rate of 10.1% presents a challenge for the BoE, but the sterling’s uptrend seems less strong than that of the EUR/USD pair. Late weakness in the equity market and oil prices may increase demand for the yen and dollar, leaving high beta pairs such as AUD/USD vulnerable unless upcoming US data alleviates concerns of a recession.
Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.
Economic Data
| Currency | Data | Time (GMT + 8) | Forecast |
| JPY | BOJ Outlook Report | ||
| EUR | German Prelim CPI | 0.6% | |
| CAD | Gross Domestic Product | 20:30 | 0.2% |
| USD | Core PCE Price Index | 20:30 | 0.3% |
| USD | Employment Cost Index | 20:30 | 1.1% |
