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S&P 500 Hits Record High Amid Tech Earnings and Fed Rate Policy Expectations, Dollar Strengthens in Diverse Global Market


Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.

The S&P 500 achieved a new record high, climbing to 4,927.93, driven by anticipation of major tech company earnings and the upcoming Federal Reserve rate policy decision. This week is pivotal with 19% of S&P 500 companies, including tech giants like Microsoft and Apple, due to report earnings. The Dow Jones and Nasdaq also saw significant gains. Concurrently, the Federal Open Market Committee is expected to maintain steady rates, with a 97% probability against a rate cut. In currency markets, the dollar index rose, influenced by various global events and market uncertainties. The Euro and Japanese yen weakened against the dollar, while the Sterling remained stable. These financial movements occur amidst global geopolitical tensions and economic concerns, notably in China and the Eurozone.

Stock Market Updates

On Monday, the S&P 500 achieved a new record high, driven by anticipation of tech giant earnings reports and the upcoming Federal Reserve rate policy decision. The index rose 0.76% to 4,927.93, surpassing its previous record close of 4,894.16 set on January 25. Similarly, the Dow Jones Industrial Average increased by 224.02 points (0.59%) to close at 38,333.45, while the Nasdaq Composite gained 1.12%, ending at 15,628.04. This marked the sixth record close for both the S&P 500 and the Dow.

The focus this week is on the earnings season, with 19% of the S&P 500 companies set to report their earnings. High-profile tech companies such as Microsoft, Apple, Meta, Amazon, and Alphabet, which have significantly contributed to this year’s market rally, are among those scheduled to release their results. Additionally, investors are keeping a close watch on earnings from major Dow components like Boeing and Merck. Meanwhile, the Federal Open Market Committee is commencing its two-day policy meeting, with market participants almost certain that the Fed will maintain steady rates. According to the CME Group, there’s approximately a 97% probability that the Fed will not reduce rates in the upcoming meeting.

Data by Bloomberg

On Monday, the stock market experienced overall positive movement, with all sectors combined showing a gain of +0.76%. Notably, the Consumer Discretionary sector led the advances with a +1.37% increase, followed closely by Information Technology and Communication Services, which rose by +0.97% and +0.89% respectively. Health Care, Real Estate, Utilities, and Industrials also saw moderate gains, each climbing by approximately +0.68% and +0.64%. More modest growth was observed in Consumer Staples and Materials, both up by +0.52%, while Financials lagged slightly behind with a +0.30% increase. In contrast to the general upward trend, the Energy sector was the only one to experience a decline, dropping by -0.20%.

Currency Market Updates

In the recent currency market update, the dollar index experienced a 0.25% rise, largely driven by gains against major currencies, with the notable exception of the Japanese yen. This shift in the currency market comes amidst a variety of global events contributing to a heightened sense of risk. These include uncertainties surrounding key U.S. labor data, Eurozone inflation reports, and upcoming policy meetings of the Federal Reserve and the Bank of England. Additionally, increasing tensions in the Middle East and concerns over China’s economic future have added to the market’s cautious sentiment.

The Euro to U.S. Dollar (EUR/USD) pair saw a notable decline of 0.35%, significantly contributing to the dollar’s overall strength. This decline was influenced by weak economic conditions in Germany and a mild recession in the Eurozone. Moreover, a growing number of dovish European Central Bank policymakers has led the market to anticipate a 25 basis point rate cut by the ECB in April. The USD/JPY pair also experienced a 0.33% fall, influenced by a decrease in Treasury yields and a slight increase in Japanese Government Bond yields, challenging the uptrend driven by speculations and expectations of policy convergence between the Federal Reserve and the Bank of Japan. In addition to these currency movements, Sterling displayed a modest drop of 0.19%, maintaining its range for the seventh consecutive week, while oil prices fluctuated amid geopolitical tensions and concerns over Chinese economic stability.

Economic Data
CurrencyDataTime (GMT + 8)Forecast
USDCB Consumer Confidence23:00114.2
USDJOLTS Job Openings23:008.73M

Make informed decisions with the most up-to-date and reliable financial data, exclusively provided by vtmarkets.com.