New AI chips from Nvidia and AMD, which will be presented in Taiwan this week, helped the chip giants to recover in pre-market trading after the recent profit-taking. We bought Nvidia on Friday at a very good time. Other growth stocks are also recovering after last week's 1.4% sell-off caused by investors pulling out of big tech companies.
Stocks in Europe and Asia performed well, with India's Sensex rising more than 3% and the Indian rupee making its biggest jump in a year on speculation that incumbent Prime Minister Narendra Modi could surely push through pro-growth policies after a clear election victory. In Mexico, the Mexican peso plunged after Claudia Sheinbaum was elected the country's first female head of government in a landslide. The broad Europe 600 Index is up more than 0.5% and stocks in the US have also pushed the S&P 500 up 0.3% in pre-market trading.
We see yields continuing their three-day slide, but the USD is still holding steady as yields are also falling in other parts of the world.
Meanwhile, GameStop was back in the spotlight after celebrity Redditor Keith Gill posted an alleged $116 million position in the stock. It was the account's first post in three years. The screenshot, which also included 120,000 call options, could not be verified, but GameStop doubled in extremely volatile pre-market trading. AMC Entertainment Holdings, another meme stock, is up nearly 30%.
May was a positive month for stocks. Investors are still divided on the outlook as prices are close to their all-time highs. Investment banks are also divided: JPMorgan analysts generally expect disappointing returns for the S&P 500 in the coming months, while famed analyst Michael Wilson of Morgan Stanley says he expects the bull market to continue for now. However, last week's positive PCE data could be key in keeping investors optimistic that the Fed's rate cuts are “timely”.
Online fashion retailer Shein is expected to file for an IPO in London later this week, which could be worth around £50 billion ($64 billion). This could make Shein's IPO one of the largest IPOs in UK history.
We have a mixed view on commodity prices, but they are benefiting from lower yields, increased expectations of interest rate cuts and improved risk sentiment. Gold is back above $2,330, trying to recover from its recent decline and benefiting from falling opportunity costs as global bond yields continue to cool.
👁 ROB'S MARKET OVERVIEW:
June 3 2024
🌐/🇺🇸 Global Markets ↗️/↕️
Cyclical / Luxury Stocks ↗️
Tech/Growth Stocks ↗️
Financial Stocks ↗️/➡️
Defensive Stocks ➡️
Energy Stocks ↘️/➡️
Materials Stocks ↘️/➡️
💱 Forex
AUD ↗️ (benefiting from falling yields, rate cut optimism, improved risk sentiment)
EUR, JPY, CHF ↗️/➡️
USD, CAD ➡️
GBP ↘️/➡️
⚒ Commodity Markets ↕️
Oil prices ➡️/↗️ (limited downside potential after recent slide)
Natural Gas prices ↗️/↕️
Metal prices ➡️/↗️
Gold ↗️/↕️ (benefiting from recent strong slide in yields; bounce after technical pullback)
⚡️Cryptos ↗️/↕️ (benefiting from improved risk sentiment & rate cut hopes. BTC to test $70K soon)
(*↗️ bullish, ↘️ bearish, ➡️ sideways / stable, ↕️ mixed / volatile)
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