US Stocks Rally as Tech Leads with +2.48% Nasdaq Gain
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 market saw a significant rally in the previous session, led by the tech sector with the Nasdaq 100 gaining +2.48% to close at 30,406.19. The S&P 500 also rose by +1.08% to 7,500.58, while the Dow Jones edged up by +0.14% to 51,564.70.
Today's focus will be on the macroeconomic data releases, including the latest jobless claims and existing home sales figures, which could provide further insight into the state of the US economy.
US Session Recap
| Index/Asset | Close | Change | Note |
|---|---|---|---|
| S&P 500 | 7,500.58 | +1.08% | |
| Nasdaq 100 | 30,406.19 | +2.48% | |
| Dow Jones | 51,564.70 | +0.14% | |
| Russell 2000 | 2,979.77 | +2.12% | |
| VIX | 16.40 | -11.06% | |
| 10Y Yield | 4.45 | -0.80% | |
| WTI Crude | 75.15 | -2.14% |
Top large-cap movers
NVDA led the large-cap gainers with a +2.95% move to 210.69, followed by AVGO with a +4.70% gain to 411.35. On the other hand, JPM was the biggest loser, falling -2.47% to 325.22.
Spotlight
| Key Metrics | Value |
|---|---|
| 10Y Yield | 4.45 |
| WTI Crude | 75.15 |
| VIX | 16.40 |
The 10Y Yield fell to 4.45, its lowest level in recent weeks, as investors sought safer assets. WTI Crude prices also declined, falling to 75.15 due to concerns over global demand. The VIX, a measure of market volatility, dropped to 16.40, indicating a decrease in investor anxiety.
Macro & Fed
- Current policy rate: 5.00%-5.25%
- Yield levels: 10Y Yield at 4.45, 2Y Yield at 5.10%
- Today's data releases:
- Jobless claims at 20:30 HKT
- Existing home sales at 22:00 HKT
Geopolitics & Global
- Ongoing tensions between the US and China over trade and security issues
- European Union leaders meeting to discuss economic growth and migration policies
- Rising concerns over global food security due to climate change and conflict
Earnings — What to Watch
| When | Ticker | What to look for |
|---|---|---|
| 20 June | ORCL | Q4 earnings and revenue growth |
| 21 June | KSS | Q1 earnings and same-store sales |
Stocks Worth Watching
- NVDA: Strong earnings growth and increasing demand for AI chips
- AMZN: Expanding cloud services and growing e-commerce market share
- JPM: Impact of interest rate changes on banking sector
- GS: Investment banking and trading revenue growth
- TSLA: Electric vehicle demand and production updates
What Could Break the Tape
Potential risks to the market include a surge in inflation, leading to higher interest rates and decreased consumer spending. Additionally, ongoing geopolitical tensions could lead to trade disruptions and decreased investor confidence.
On the other hand, a strong earnings season and improving economic data could lead to increased investor optimism and a continued rally in the market. Furthermore, any progress in trade negotiations between the US and China could lead to increased business investment and growth.