Contracts for the US100 on the Nasdaq100 technology index gained over 2.00% at yesterday’s session close, breaking above the 19,000-point level and setting a new historical record at session close. These increases are driven by the “magnificent 7” tech companies that have recently been pushing the indices upwards.
Market attention remains focused on Nvidia, which day after day closes at record levels. Yesterday, the company's shares gained 5.16% to $1,224 per share, thus achieving a market capitalization of $3.011 trillion. Nvidia has surpassed Apple and has become the second largest publicly traded company in the world. Microsoft remains in first place with a total market capitalization of $3.151 trillion. However, this may not last long, as today, before the Wall Street session opens, Nvidia is gaining another 2.00% to $1,248, while Microsoft is losing 0.20%.
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Open account Try demo Download mobile app Download mobile appThe euphoria in the stock markets continues, with bullish investor sentiment driven not only by artificial intelligence but also by speculation about upcoming interest rate cuts and the absence of a recession in the USA. The latest macro data was moderately worse than expected, which the markets took positively. The reports were not weak enough to cause panic but were sufficient to revive speculation about the first rate cuts as early as September this year. Currently, the probability of such a move by the Fed is priced at 80%, whereas a week ago it was around 50%.
Nasdaq100 (D1 interval)
The above factors were a catalyst for the continuation of the increases. Today, US100 contracts are also slightly gaining, remaining above the 19,000-point level. However, for the continuation of the increases, the key will be tomorrow's labor market report. Regardless of the data, the market reaction may be limited due to the upcoming Fed decision next week. While the decision itself is known, more important will be Jerome Powell’s speech and his comments on the current macro situation. In recent months, the market has been nervous in the week of the decision announcement, which has manifested in a rise in the dollar and yields, as well as declines in the stock market.
Source: xStation 5
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