📆 Wednesday, May 1
► European markets experienced subdued activity as most European markets closed for Labor Day, with the Stoxx 600 marginally down by 0.1%. This slight decline reflects caution among investors ahead of the Federal Reserve's policy decision. The automotive sector struggled, contributing to the overall stagnant market mood, despite some positive / improving economic data from the region signaling recovery.
► In the US, futures on the S&P 500 indicated a potential continuation of the recent downturn (dropping 0.2%), influenced by data supporting the likelihood of enduring high US interest rates. The market's attention is fixed on the Federal Reserve's decision later today, with anticipation building around potential statements on interest rate policies. Notably, Amazon's recent earnings report showed strong cloud unit sales which contrasted with its lukewarm revenue forecast, impacting sentiments around tech stocks. Amazon is trading at 2% higher in pre-market trading. The USD gained further strength, affecting commodities and emerging market currencies as investors speculate on continued high rates in the US. This shift has seen Treasury yields stabilize after significant previous gains, underscoring the market's wary stance.
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