Great article, would you like to share it?Markets Rally Amid Inflation Easing and Optimistic Earnings
@DoTrading:1. Stocks Post Best Week Since November Election U.S. stocks capped off a strong week, driven by easing inflation concerns and robust corporate earnings. $.SPX(.SPX)$ : Rose 1% Friday, up 2.9% for the week, marking its best performance since November's U.S. election week. Dow Jones Industrial Average: Gained 335 points (1.0%) Friday, with a weekly rise of 3.7%. $NASDAQ(.IXIC)$ : +1.51% to 19,630.20 $Tesla Motors(TSLA)$ $NVIDIA(NVDA)$ $Apple(AAPL)$ Market Sentiment: Positive CPI data, falling bond yields, and strong banking results helped lift investor sentiment, prompting optimism about a potential return to all-time market highs. Ind perf 2. Inflation Data Eases Market Worries The latest U.S. consumer price index (CPI) report showed cooling inflation, particularly in the core metric that excludes energy and food. Headline CPI: Climbed 2.9% year-over-year in December, higher than November’s 2.7%. Core CPI: Slowed to 3.2%, slightly below forecasts and November’s 3.3%. The softer inflation metrics brought relief to investors, leading to declining bond yields and renewed confidence in the Federal Reserve’s pause on interest rate changes. 3. Bank Earnings and Commodity Performance Bank Earnings: U.S. lenders like Morgan Stanley and Bank of America reported impressive results. Morgan Stanley’s earnings surged 147% year-over-year, driven by investment banking and trading revenues, while Bank of America doubled its earnings, aided by higher interest income. Energy: Oil prices climbed to multi-month highs. Brent crude surpassed $82/barrel, with WTI briefly crossing $80, supported by: Higher demand forecasts from the IEA. U.S. sanctions on Russian energy. Metals: Gold breached $2,700 USD, bolstered by inflation easing and lower interest rate concerns. 4. Upcoming Events and Potential Volatility The week ahead could see heightened market activity: Donald Trump’s Inauguration: Scheduled for Monday, the inauguration could bring policy announcements affecting trade, tariffs, and fiscal measures. Trump’s Inauguration Earnings Season Intensifies: Fourth-quarter results from a broader set of sectors will continue to shape investor sentiment. TikTok Ban Saga: Uncertainty remains as the app faces a potential U.S. ban, with both current and incoming administrations showing hesitancy to enforce it. Tik Tok Bond Auctions: Investors will closely watch U.S. debt financing needs in the coming quarter, as rising yields could pose challenges for equities. Conclusion A week of easing inflation, strong earnings, and geopolitical developments gave U.S. markets a much-needed boost. While optimism is growing, the coming days hold potential catalysts for volatility, including Trump’s inauguration, corporate earnings, and bond market movements. Investors remain cautiously optimistic as they navigate these key developments. If you find this post interesting, give it wings! ️ Repost and share the insights. Do consider “Follow me” and get firsthand read of my daily new post. Thank you. This summary is for informational purposes only and does not constitute financial or investment advice. Please consult a financial advisor before making any investment decisions. @TigerStars @Tiger_SG @TigerCommunity @Tiger_comments @Daily_Discussion @CaptainTiger
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