Stocks Maintain Gains Supported by Strong Economic Data

Stocks continue their upward trend, fueled by robust economic data.
A wave of financial results announcements kicks off, with companies like Netflix,
Tesla, and Intel revealing their outcomes earlier this week.
U.S. stocks sustain their rise after reaching a record level last week,
bolstered by strong economic data that enhances the appetite for risk,
despite warnings of intense and rapid buying activities in the market.

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Conclusion

Details:

Stocks have overcome the challenging start they faced earlier in the year,
amidst expectations that the Federal Reserve will reduce interest rates in 2024,
and anticipation that the artificial intelligence boom will support profit growth.
Since reaching the bottom in 2022, the S&P 500 index has shown a remarkable recovery, adding value exceeding $10 trillion.

The earnings season kicks off at its peak this week, with Netflix, Tesla, and Intel expected to announce their financial results.
The outlook remains positive, as David Donabedian, Chief Investment Officer at CIBC Private Wealth,
sees a shift in investors’ perception of the economy as resilient, regardless of whether interest rates rise or not.

Conclusion:

In another context, the future outlook for stock performance remains optimistic,
with artificial intelligence remaining a key driver for global technology stocks,
prompting recommendations to invest in semiconductor and software sectors.
Companies and consumers anticipate a better spending environment due to expected interest rate cuts in the second half of the year.

In the current market performance context, the S&P 500 index experienced a slight increase,
while the yields of 10-year Treasury bonds fluctuated.
Stocks of Apple, Microsoft, Nvidia, Alphabet, Amazon, Meta Platforms, and Tesla strengthened Wall Street’s recovery.
Conversely, the modified version of the S&P 500 index poses challenges to its dominant influence,
leading to a 17% discount from the benchmark valuation.

Stocks Maintain Gains Supported by Strong Economic Data

Stocks Maintain Gains Supported by Strong Economic Data

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