Global stocks hit new ATHs after the Fed maintained rate cut optimism and tech/chip/AI stocks jumped further after Micron issued a higher-than-expected revenue forecast and reported strong demand for AI hardware.
The market was surprised when Fed policymakers yesterday maintained their forecast for three rate cuts this year, despite recent higher-than-expected inflation figures. Both the Fed and Chairman Jerome Powell followed our expectations exactly, resulting in gigantic gains for our community yesterday – congratulations again from the whole SmartTrader team 🎉
US Treasuries rallied after the Fed rate decision/press conference, causing yields to fall and the USD to give back some of its recent gains. The gold price rose above $2,200 per ounce for the first time. The positive impact was seen not only on Wall Street but around the world, including a sharp rise in emerging market equities – the biggest one-day rise since December.
The SNB's rate cut was the first by a central bank of the world's ten most traded currencies since the pandemic and came as a surprise to many. At the same time, however, inflation in Switzerland has been within the target range for more than six months – a rate cut was therefore to be expected, but nevertheless came as something of a surprise today. Following the SNB's rate cut, the CHF plummeted. The GBP also fell further after two of the Bank of England's most ardent hawks withdrew their support for higher interest rates, suggesting that the Bank of England is also getting closer to cutting rates.
We have seen strong reactions and will therefore also see corrections. However, the overall trend remains in place: Equities remain in a good position and will receive additional support from the easing of financial conditions in H2/2024. The US economy will remain the main driver for global equity markets, especially as European economic data continues to point to ongoing weakness. A weaker USD and lower yields will also keep markets optimistic and also help commodities (including gold) to rally
👁 ROB'S MARKET OVERVIEW:
March 21, 2024
🌐/🇺🇸 Global Markets ↗️
Cyclical / Luxury Stocks ↗️
Tech/Growth Stocks ↗️
Financial Stocks ➡️/↗️
Defensive Stocks ➡️
Energy Stocks ➡️/↗️
Materials Stocks ↗️
💱 Forex
AUD ↗️
JPY ➡️/↗️ (recovering some of the recent sharp losses; remains weak)
USD ↗️/↘️ (slight rebound gains – but giving more of the recent gains away again)
EUR, CAD ➡️
CHF, GBP ↘️
⚒ Commodity Markets ↕️/↗️
Oil prices ↘️/➡️/↗️ (oil to rise again once USD stops rebound moves)
Natural Gas prices ↘️/↕️
Metal prices ➡️/↗️
Gold ↗️/↕️ (gold to remains volatile, may find support at $2,200; remains bullish)
⚡️Cryptos ↗️/↕️ (found support at near $63K as we expected; remains volatile; resistance in range $69K – $70K for now)
(*↗️ bullish, ↘️ bearish, ➡️ sideways / stable, ↕️ mixed / volatile)
Your Robert
