"But the reasons behind the quarters sluggish start may be cause for concern. Federal Reserve Chairman Jerome Powell said Friday that the central bank doesnt need to be in a hurry to cut interest rates. The message seemed to hit home for markets, helped along by strong manufacturing data Monday.
Bond yields rose and the probability of a rate cut in June fell to 58%, down from 73% a month ago, according to CMEs FedWatch tool. To be sure, yields have risen this year and rate expectations have also been pushed back. But neither of those things has significantly impacted stocks, which have surged to record highs.
However, the start to April trading suggests rate expectations and the bond market could have a more significant role to play.
Another factor for investors to watch is the performance of the so-called Magnificent 7 stocks. Tesla, which reports crucial delivery numbers Tuesday, and Apple have lagged behind the broader market in 2024 and more recently the rest of the group, including Nvidia, has underperformed.
On the one hand that indicates broader market strength, on the other it suggests the heavily weighted group may not be able to drag stocks higher in times of need.
Of course, it could just be a blip.."
Edited by dTraderB, 02 April 2024 - 06:32 AM.
