Economy

Another record closing for S&P 500 and Nasdaq

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The rally continued as the S&P 500 and Nasdaq raced towards record closings. Dow Jones, the laggard index, rose during the session, too.

💰Broadening of the rally💰

As discussed, we see green shoots on the S&P 500’s broadening rally. Yesterday, 10 out of 12 sectors in the S&P 500 finished in the green. Tesla glowed as the best performer, jumping 10% following a less-than-feared production and delivery report. While Tesla has risen by about 27% since last week, it is still a laggard among the Magnificent 7, baking in the red by an excess of 17% over the past year.

🎯Macroeconomic data is vital🎢

The latest Job Opening and Labor Turnover Survey (JOLTS) showed a bump in job openings. While one may favour poor data as good news, investors should be cautious about what they wish for. A modest rise and firming in the labour market could help extend the economic expansion. In contrast, declining labour health could threaten to accelerate economic slowdown, destroying our goldilocks situation.

🎙Fed Chairman Powell gives an encouraging statement🖨

Jerome Powell made his first remark during the ECB forum since the June FOMC meeting. He recognised the recent progress in inflation and reinforced the need to see more good data to increase confidence that inflation is on a sustainable moderate path.

📪What’s on the menu today?🫕

1) At 8.15pm, we will have the ADP Nonfarm Employment change data.

2) Initial Jobless Claims data will arrive at 8.30 pm.

3) Finally, we will have a string of S&P Global data from services for the composite index at 9.45 pm.

4) At 10 pm, the list of factory orders and ISM Non-Mnaufacturing Emplouemnt will all flow in.

It will be a data-packed day despite the market operating only for half a day.

It is 3 July 2024, Wednesday, 9 am in Singapore and 9 pm in New York.

The market has been volatile, with redness often seen in the pre-market before funds step in to buy up. Indeed, we still have $6 trillion of cash in a market money fund that has yet to enter the equity market.

Cheers.