The Awakening of the American Markets Propels Wall Street to New Record Highs

U.S. stocks continue their historic upward trajectory, with the S&P 500 index closing near the milestone of 5000 points.

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Expectations

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Stock prices rose on Wednesday, driven by major technology companies, while 10-year Treasury bond issues helped alleviate concerns about supply.
Bond prices remained stable, showing little significant change.

Stocks have sustained their sharp rise from their lowest levels in October 2022,
fueled by traders’ optimism about ongoing economic improvement and corporate earnings.Investors ignored concerns about high valuations and sluggish trading in February, leading the S&P 500 index to achieve new record levels.

Mark Haefele of UBS noted that the market is overcoming concerns even amid challenges such as changes in Federal Reserve policy and geopolitical tensions.Despite expectations of a seasonal economic downturn, market conditions have visibly improved, indicating strong momentum.

Positive sentiments for U.S. stocks were reinforced by a government decision to sell bonds over ten years,
exceeding $42 billion with yields below expectations.This is considered a sign of market confidence in the Federal Reserve’s continued interest rate cuts this year.

Peter Bookvar, the founder of The Boock Report, highlighted the significant success of the 10-year bond auction.

Wall Street

also received statements from Federal Reserve officials, emphasizing the need to avoid rushing into interest rate cuts.
Adriana Kugler expressed optimism about the ongoing inflation slowdown, stating that there is no urgent need to reduce borrowing costs. Susan Collins,
the president of the Federal Reserve in Boston, mentioned the need for additional evidence of inflation stability before considering interest rate cuts.

Neel Kashkari, the president of the Federal Reserve in Minneapolis,
added that a few more months’ data on inflation should be examined before making any decisions on easing monetary policy.

Solita Marcelli of UBS Global Wealth Management anticipated continued strong economic growth in the United States and expected improvements in Europe,
supporting stocks.
She indicated a positive environment paving the way for the Federal Reserve to start lowering interest rates from May,
by 100 basis points by year-end.

In this context, the MSCI World Index for advanced stock markets rose to record levels,
following the lead of all major U.S. stock indices.

Expectations

Strong economic growth in the United States and expected recovery in Europe are expected to support the markets.
However, there are indications of saturation in some market sectors, according to strategists at Barclays.

As one of the world’s largest exchange-traded funds approaches a crucial turning point after a strong 22% rise since late October,
there may be opportunities for further gains in the coming weeks. The Invesco QQQ Trust Series 1 (QQQ), which tracks the Nasdaq 100 index,
is trading near key resistance levels from three years ago,
making it a competitor to the broader SPDR S&P 500 ETF (SPY), known as “SPY.”

If the fund decisively breaks through the February 2021 resistance level, QQQ’s performance is expected to significantly outpace SPY in the coming period.
With the confirmation of the upward trend for QQQ, it may reach new record levels, according to Bloomberg Intelligence’s Anthony Feld’s estimates.

Performance of Key Indices:

S&P 500 rose by 0.8% as of 4 pm New York time.
Nasdaq 100 increased by 1%.
MSCI World Index rose by 0.6%.
10-year Treasury bond yield rose by two basis points to 4.12%.
Bitcoin price increased by 2.3% to $44,161.79.

The Awakening of the American Markets

The awakening of the American markets

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