The Market News Today: Nasdaq Hits Record High Despite Fed Rate Cut Concerns

James Hyerczyk
Updated: May 27, 2024, 07:50 GMT+00:00

Key Points:

  • The U.S. stock market was mixed last week with gains in the S&P and Nasdaq driven by robust earnings from Nvidia.
  • Inflation Data Focus: Key data includes U.S., euro zone, Japan inflation, Fed's PCE, and oil prices.
  • Gold, Silver Drop: Prices fell due to Fed's hawkish stance and strong U.S. economic data.
  • OPEC+ Supply Cuts: Likely to extend current supply cuts during next month's online meeting.
  • XRP Declines: Investors wary of court rulings in SEC vs. Ripple and SEC vs. Coinbase cases.
The Market News Today

In this article:

Markets Closed for Memorial Day; Nvidia Data Drove Weekly Gains

U.S. stock markets are closed Monday for Memorial Day. Last week, the Dow fell 2.34%, the S&P 500 edged up 0.03%, and the Nasdaq rose 1.41%. Strong Nvidia earnings and improved inflation expectations on Friday drove gains, despite hawkish Fed minutes earlier in the week that tempered expectations for central  bank rate cuts this year.

Inflation Data, China Manufacturing, and Oil Prices in Focus This Week

In the holiday-shortened week ahead, inflation data from the U.S., euro zone, and Japan will be crucial. The Fed’s PCE price index and multiple Fed speakers will guide U.S. rate expectations. Euro zone inflation data may influence ECB rate decisions. Japan’s Tokyo inflation data will be watched for BOJ rate moves. China’s manufacturing and industrial profits data will be scrutinized. Oil prices remain under pressure due to concerns over demand and higher interest rates.

Gold, Silver Drop on Fed’s Hawkish Stance and Strong Economic Data

Gold and silver prices fell last week, driven by the Federal Reserve’s hawkish meeting minutes and robust U.S. economic data. Fed officials emphasized the need for sustained inflation control before considering rate cuts. Rising U.S. Treasury yields and strong business activity data further pressured silver, while gold faced profit-taking after hitting record highs. The market now expects rate cuts to be delayed, strengthening the dollar and weighing on precious metals.

OPEC+ Expected to Extend Supply Cuts Amid Virtual Meeting Shift

OPEC+ will hold next month’s policy meeting online, likely extending current supply cuts into the second half of the year. The group, led by Saudi Arabia and Russia, aims to maintain roughly 2 million barrels per day of output curbs to support crude prices. Delegates expect no changes in production quotas. The shift to an online meeting, due to unspecified reasons, suggests a continuation of existing policies without major controversies.

XRP Declines Amid Looming Court Rulings in SEC Cases

On Sunday, XRP fell 2.53% after ending the previous week up 3.75% at $0.5282. Investors are wary of upcoming court rulings in the SEC vs. Ripple and SEC vs. Coinbase cases, which could significantly impact the U.S. crypto market. A potential SEC appeal on the Programmatic Sales of XRP ruling and the outcome of Coinbase’s legal battle against the SEC may shape future regulatory enforcement and influence the market’s trend.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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