US Stocks Surge as Tech Leads the Charge
A 5-minute read of yesterday's US session and today's catalysts — what to watch before pre-market opens at 21:30 HKT.
TL;DR
The US stock market saw a significant surge yesterday, with the Nasdaq 100 leading the charge with a +3.29% gain. The S&P 500 and Dow Jones also posted impressive gains, rising +1.75% and +1.86% respectively.
The rally was driven by a strong performance from tech stocks, with NVDA and AVGO posting gains of +2.22% and +3.62% respectively. The VIX fell -12.51% to 19.44, indicating a decrease in market volatility.
US Session Recap
| Index/Asset | Close | Change | Note |
|---|---|---|---|
| S&P 500 | 7,394.30 | +1.75% | |
| Dow Jones | 50,848.75 | +1.86% | |
| Nasdaq 100 | 29,446.18 | +3.29% | |
| Russell 2000 | 2,921.03 | +3.02% | |
| VIX | 19.44 | -12.51% | |
| 10Y Yield | 4.46 | -1.74% | |
| WTI Crude | 86.38 | -4.05% |
Top large-cap movers
TSLA was the top gainer, rising +4.60% to 399.15. Other notable gainers included GS, which rose +3.43% to 1,035.64, and AVGO, which gained +3.62% to 385.57.
Spotlight
| Key Metrics | Value |
|---|---|
| NVDA Stock Price | 204.87 |
| NVDA Daily Change | +2.22% |
| NVDA Market Cap | 1.23T |
NVDA was in the spotlight yesterday, with the stock rising +2.22% to 204.87. The company's market cap now stands at 1.23T. The gain was driven by a strong performance from the tech sector, with many investors betting on a continued rally in the industry.
Macro & Fed
- Current policy rate: 4.25%-4.50%
- 10Y Yield: 4.46
- Today's data releases:
- 08:30 HKT: Initial Jobless Claims
- 10:00 HKT: Consumer Price Index
Geopolitics & Global
- Tensions between the US and China continue to escalate, with trade talks stalled
- The EU is set to impose new sanctions on Russia, citing ongoing aggression in Ukraine
- The global economy is showing signs of slowing, with many countries experiencing decreased growth
Earnings — What to Watch
| When | Ticker | What to look for |
|---|---|---|
| 14:00 HKT | ORCL | Q4 earnings, revenue guidance |
| 21:00 HKT | CSCO | Q3 earnings, dividend announcement |
Stocks Worth Watching
- AAPL: The company is set to announce new products, which could drive the stock higher
- MSFT: The company's cloud business is expected to continue growing, driving earnings higher
- GOOGL: The company's advertising business is expected to slow, which could impact earnings
- JPM: The company's banking business is expected to drive earnings higher, despite economic headwinds
- GS: The company's investment banking business is expected to slow, which could impact earnings
- TSLA: The company's electric vehicle business is expected to continue growing, driving earnings higher
What Could Break the Tape
A global economic slowdown could lead to decreased earnings and a subsequent market downturn. The ongoing tensions between the US and China could also lead to a decrease in trade, impacting the global economy.
A continued rally in the tech sector could drive the market higher, with many investors betting on a continued growth in the industry. The Fed's dovish stance could also lead to increased liquidity, driving the market higher.