Investment Learning

  • June 3, 2024

Short-term market dynamics are 'relatively narrow': Strategist

Chip stocks have captured the attention of investors after becoming the heaviest-weighted sector within the S&P 500 (^GSPC) for the first time in history. BMO Wealth Management US Chief Investment Officer Yung-Yu Ma joins Morning Brief to share his insights on the market outlook. Ma suggests that "the enthusiasm for AI is going to come and go in waves," acknowledging the unpredictable nature of sentiment shifts in the sector. He notes that it's "difficult to predict" exactly when and what developments will influence investor sentiment. While Ma believes that the "productivity gains and benefits from AI" will be enough to sustain continued gains in companies that contribute to the technology, he anticipates "a choppy path forward." Regarding market rotation, Ma expresses concern about the current trend, stating: "It's certainly concerning in the short-term that we're seeing a relatively narrow market, and that narrowness has been increasing recently and really driven by fewer stocks... that's not what you want to see for market health." For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Angel Smith

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  • June 3, 2024

Investors Await Key Economic Reports Ahead of Federal Reserve Meeting

According to CryptoPotato, the final week of employment data before the Federal Reserve meeting on June 12 is underway. Investors are keenly observing several economic reports that will influence the Fed's future policy decisions. The job market reports due on Friday are of particular interest. Meanwhile, the crypto markets have seen minimal movement over the weekend for most digital assets. The week started with the release of May's ISM Manufacturing PMI (Purchasing Managers' Index) report, which provides insights into the business conditions in the U.S. manufacturing sector. This data is a reliable leading indicator for assessing the state of the U.S. economy and can help anticipate changing economic trends. The services sector, contributing over 70% of the U.S. GDP, is considered more significant. On Wednesday, the May ISM Services PMI will be released, serving as another leading indicator of changes in economic conditions. The week's key events include the release of ISM Manufacturing PMI data on Monday, JOLTs Job Openings data on Tuesday, ADP Nonfarm Employment data and ISM Non-Manufacturing PMI data on Wednesday, May S&P Global Services PMI data also on Wednesday, and the May Jobs Report on Friday. Friday's Payrolls and Unemployment reports from the Labor Department's Bureau of Labor Statistics are the most significant. These reports provide the number of new jobs created during the previous month and the percentage of active employment seekers. Policymakers closely follow these figures, which are strongly associated with the overall health of the economy. The Fed also pays close attention to labor market changes when determining its policy decisions. The Global Macro Investor commented, 'It will be key to see whether the US labor market continues cooling. Wall Street analysts expect 180,000 new jobs to be added and the unemployment rate to stay at 3.9%. Meanwhile, revised US labor market data already points to a recession.' In the crypto market, it is unlikely that this week's employment and economic reports will significantly impact the markets, which are more closely affected by CPI inflation reports. The total market capitalization has remained steady over the past few days at $2.68 trillion. Bitcoin prices began to rise during the Monday morning Asian trading session, adding 1.4% on the day to reach $68,619. Ethereum recovered minor losses to return to $3,800, and the altcoins were mostly flat, with Toncoin adding 10% over the past 24 hours.

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  • June 2, 2024

Stocks hover above flatlines to kick off June trading

The three major market averages (^DJI, ^IXIC, ^GSPC) open Monday — the first trading session of June — slightly above their flatlines. Morning Brief Hosts Seana Smith and Brad Smith monitor the market action after the opening bell, while Yahoo Finance Senior Markets Reporter Jared Blikre observes movements across sectors and within the 10-year Treasury yield (^TNX) and the semiconductor space. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Luke Carberry Mogan.

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