Equity markets had a good day

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Stocks rose sharply on Thursday as investors swung between digesting good news from the debt ceiling discussion and easing worry about Fed’s hawkish comments.

The S&P 500, in particular, rose to its 2023 high. The upbeat sentiment is supported by Speaker Kevin McCarthy’s plan to possibly have a vote on the debt ceiling next week.

At least for now, the immediate concern helped pull away attention from inflation to the political agenda. Nonetheless, we should be cautious that while stocks could still move higher, any pause in inflation-softening data could derail the upswing in equity prices.

Markets are pencilling a 59.8% chance of a rate pause in June FOMC.

Gold Prices are at a Crossroads

With gold prices easing from their recent high, there are questions about its upward trend. Market analysts generally expect gold to rise to USD 2100 per oz by the end of 2023 and could hit USD 2200 per oz during 1Q2023.

This expectation also aligns with the general sentiment of a better outlook on commodities. It isn’t a surprise that gold prices had moderated given the better prospect from the debt ceiling discussion, which could avert a government shutdown and temporarily paused sentiments on rushing towards safe haven.

Nvidia- It is on FIRE!

Stocks of the well-known graphic card maker, rose sharply after analysts rated the price target for the company as a rosy outlook on Nvidia’s AI development pools spurred hope for AI-geared graphic processing units.

AI is a hot button in the market, as Plantir also rises sharply in yesterday’s trading.

What’s on the menu today?

8.45 pm: FOMC member William speaks
9 pm : FOMC member Bowman speaks
11 pm : Fed Chair Powell speaks

It is 19 May , Friday, 8.55 am in Singapore and 8.55 pm in New York. What a cooling day we have. It is the week’s final trading day, and we wish everyone a prosperous trading day!