April 17, 2024

US Indexes Push Higher

The Dow Jones index made average moves upward on Monday, as well as the Nasdaq and S&P 500 index. The stock market is continuing with its increased momentum early this week. Nasdaq and S&P 500 rose beyond their 50-period daily moving averages with a lot of top shares giving signs that they should be bought.

The Treasury Yields as Potential Headwind

Nevertheless, the US ten-year Treasury bond yields keep going in the direction of a long-term height. It might be a headwind in the market’s rally in the near term. The consumer price index for August is set to be released on Tuesday.

Warren Buffet is said to have purchased more OXY stocks and Berkshire Hathaway announced that it has up to 26.8% stake in OXY as of Friday. The OXY stock increased towards the close of business on Friday as it round tripped a new breakout.

Billionaire investor, Elon Musk, presented a new case for opting out of the deal to buy Twitter. Twitter shareholders are getting ready to vote later in the week on the billionaire’s offer. Twitter share value dropped a bit on Friday.

The Joe Biden administration is planning a move for October when it will expand the scope of curbing the export of chip and AI-making semiconductors to China. Reuters quoted different sources while reporting it on Sunday night. The move will solidify the ban on AMD and Nvidia chips.

US-China Contest Might Hit a New Level

AMD and Nvidia confirmed in August that they received letters from the Commercial Department that stopped their shipments to China. Some software shares such as Paylocity, Palo Alto Networks, and Cadence Design System currently show strength and invite investors.

The Dow got up by 0.4% against the fair value. Nasdaq 100 increased by 0.55%, and S&P 500 did a 0.5% raise.

The ten-year Treasury bond yields fell by 1 bps to reach 3.31%. Crude oil jumped by 1% and the price of natural gas rose by 1%.

The Dow only needs to see a little gain throughout Monday for it to go over its 21- and 50-days moving averages. Nasdaq ended Friday a point short of its 21 daily moving average. 

Note that any action taken overnight regarding the Dow or anywhere else does not turn into real sales in the follow-up market session.

In the overall market activity last week, the Dow rose by 2.7% while the S&P 500 rose by 3.65%. The Nasdaq index, on its part, rose by 4% throughout the week.      

Leave a Reply

Your email address will not be published. Required fields are marked *