top of page

Stock Market Update Thursday May 2, 2024

Stock Market Update Thursday May 2, 2024 Equity markets reversed yesterday's late-day selling pressure and staged a strong rally, with the S&P 500 surging nearly 1% and the Nasdaq 100 experiencing a 1.3% advance.  However, a clearer picture of the market's near-term trajectory will likely emerge after the release of tomorrow's nonfarm payroll report, a key indicator of economic health and potential influence on future Fed policy decisions.


Away From Stocks: The US Treasury bond market continued to react positively to the Federal Reserve Chair Jerome Powell's comments on Wednesday, which were perceived as dovish. This drove two-year Treasury yields down by 17 basis points to settle at 4.87% within the last two days. In the commodities market, West Texas Intermediate (WTI) crude oil remained below $79 per barrel. Gold prices also dipped, settling at $2,302 per ounce. Finally, the VIX volatility index finished at 14.6, reflecting a slight decrease of less than one point.


The Federal Reserve's balance sheet saw a significant reduction in its portfolio of interest-bearing assets, with a $24.4 billion decline in Reserve Bank credit pushing the total down to $7.343 trillion. This marks a substantial decrease of 17.7% from the peak observed in March 2022, and represents a $84 billion reduction over the past four weeks alone. In a policy shift, the Fed intends to slow down the pace of its roll-off of Treasuries, setting a new monthly ceiling of $25 billion starting June 1st. This is down from the current $60 billion cap. Meanwhile, the maximum roll-off pace for mortgage-backed securities will remain unchanged at $35 billion per month.



These time pivots are known before the stock market opens at 9:30am


Tomorrow's Time Pivot's Today, However They May Change in The Morning When The Markets Open at 09:30am


💻Get Started at www.algotradealert.com No Credit Card Required Free Trial Premium Membership➕📉Algorithm Stock Trading 📈➕ SPY Swing Trader➕ES Live Day Trading

 

Want to read more?

Subscribe to algotradealert.com to keep reading this exclusive post.

Comentarios

No se pudieron cargar los comentarios
Parece que hubo un problema técnico. Intenta volver a conectarte o actualiza la página.
bottom of page