

EBC Markets Briefing | US equities look ahead to golden July

The S&P 500 and Nasdaq composite finished a shade lower on Thursday ahead of a key labour market report, retreating from highs reached in the previous session. Those two indexes hit record closing highs on Wednesday, powered mainly by technology stocks as markets digested economic data that could support a start to the Fed's policy easing cycle. A report on Tuesday showed job openings fell in April to the fewest in more than three years. The May private payrolls report on Wednesday was the latest data to suggest an easing in labour market tightness. Nvidia rallied to record highs earlier this week, with the AI chipmaker's valuation breaching the $3 trillion mark and overtaking Apple to become the world's second most valuable company. Analysts' projections for Nvidia's future earnings have outpaced its stellar stock gains. Nvidia is trading at 39 times expected earnings, making it less expensive on that basis than a year ago, LSEG data showed. A flood of cash from passive equity allocations will pour into the stock market in early July, setting up a continuing rally through the early summer, according to Goldman Sachs Group Inc.’s trading desk. The Wall St bank said that share prices will benefit from strong seasonal trends coming from retail investors. Historically, the first 15 days of July were the best two-week trading period of the year for equities. EBC Fintech Development Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC Forex Trading Platform or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

Learn more

Contact:

mkt@ebc.com

Disclaimer:

Investment involves risk. The content of this report is not an investment advice and does not constitute any offer or solicitation to offer or recommendation of any investment product.

Publication date:

2024-06-07 07:04:34 (GMT)

The terms and conditions of use set out below (referred to as "FX Blue's Terms"), form a contractual agreement governing FX Blue's relationship with you in relation to your use of this Website (“Agreement”) and you agree to be legally bound by FX Blue's Terms just as if you had signed this Agreement. By using this Website and any Information, you are agreeing to comply with and be bound by FX Blue's Terms, including any revisions that may be made to FX Blue's Terms from time to time. FX Blue reserves the right, in FX Blue's sole discretion, to change, modify, add or remove portions of FX Blue's Terms at any time by posting the revisions on the Website. You should check FX Blue's Terms periodically for changes as by using the Website after FX Blue posts any changes to FX Blue's Terms, you are agreeing to accept those changes, whether or not you have reviewed them, and you waive any right you may have to receive individualised notice of such changes. FX Blue's Terms may be supplemented by additional terms and conditions pertaining to specific content and activities. You agree and understand that such additional terms and conditions are hereby incorporated by reference to FX Blue's Terms. Your continued use of the Website means that you accept any new or modified FX Blue Terms.