A curated compilation of the daily market scene and economic landscape, handpicked by Nasdaq’s IR team.

Influential Forces at Play

“Nvidia has undeniably altered the sentiment in the global risk market landscape. Virtually, every global asset class is swayed by these seven stocks…” – Jim Reid, Deutsche Bank

“As global equities reach unprecedented highs, investors grapple with lingering apprehension…the terrain seems perilous out there.” -CNBC

“The AI revolution gaining momentum under Mr. Biden’s tenure, akin to Barack Obama’s fortuitous shale fracking boom…Nvidia’s near $2 trillion valuation represents a substantial bet on American private innovation.” -The Editorial Board, WSJ

“Nvidia’s market capitalization surged by $277 billion, marking the most substantial single-session increase in value ever, surpassing Meta’s $197 billion gain earlier this month.” – Jim Reid, Deutsche Bank

Flickering Rate Cut Expectations

Rate cut probabilities for the upcoming June meeting undergo significant paring, signaling evolving sentiments within the market…

The Shift Towards AI

“Robust results from Nvidia have once again alleviated market anxieties regarding a potential bubble. Traction in the vibrant AI domain closely mirrors positive EPS momentum.” – Emmanuel Cau, Barclays

“AI emerges as the new trend, propelling market dynamics and igniting investor interest.” – Goldman Sachs Global Investment Research

A Glimpse into Mutual Fund Performance

Studies reveal that, on average, 38% of large-cap mutual funds outperform their benchmarks, sparking discussions around the efficacy of active fund management…

Unveiling Market Dynamics

“Market breadth can expand in two key ways from here: 1) through a widespread earnings recovery or 2) due to lower bond yields.” – Michael Kantrowitz, Piper Sandler

Key Insights

Equities present a mixed picture with the Dollar, Treasury Yields, and Oil in retreat, while Gold gains traction…

Key stock indices such as DJ, S&P500, and Nasdaq post modest gains, contrasting with the Russell 2000’s slight decline…

In global markets, Stoxx Europe 600 edges higher, while APAC stocks depict a mixed performance. The 10-year Treasury Yield holds at 4.303%…

Across the commodities spectrum, the Dollar weakens, Gold shines at $2,024, WTI and Brent crude experience a dip, Bitcoin hovers around $50,822…

Goldman data sheds light on stocks witnessing the most significant uptick in exposure within mutual funds, painting a vivid picture of market sentiment…

On the flip side, stocks experiencing a notable decrease in exposure among mutual funds come to the forefront, underlining contrasting investment trends…

“As the native-born population ages, the role of immigration in spurring population growth becomes pivotal for sustaining the labor force and bolstering the economy’s long-term potential in the coming decades.” – Oxford Economics

Next week, the spotlight shifts to the eagerly anticipated US PCE inflation release, accompanied by inflation updates from Europe and Japan. Key economic indicators across major economies, including China’s PMI gauges, are set to be unveiled…

The ESG Radar

Exclusive: US regulator revises emission disclosure norms:

The SEC’s decision to drop the mandate for Scope 3 emission disclosures diverges from the EU’s stringent norms, potentially complicating compliance for multinational corporations…

Revving Up the EV Game:

Auto manufacturers roll out new fast-charging electric vehicles utilizing 800-volt platforms, promising swift recharge times and a paradigm shift in the EV landscape…

Market, Macro, and Corporate Buzz

• Senior Fed officials advocate a cautious approach towards rate cuts, fortifying the case for patience – BBG
• Goldman delays its projection for the first Fed interest-rate cut to June, signaling evolving market dynamics – BBG
• China’s Central Bank works to navigate the swiftly changing markets, adapting to meet shifting demands – BBG

Market Shenanigans Unearthed by Surprising Financial Twists

Unforeseen occurrences burst through the financial sphere like a tempest, catching investors off guard and setting the markets on edge:

• The European Central Bank holds firm on interest rates in anticipation of the Federal Reserve’s next move, offering a balancing act of caution and foresight – Holzmann shares insight on the matter.
• Indian rate setters find themselves leaning towards the status quo, deeming the current policy the right fit amidst economic turbulence.
• Moreover, US money-market funds experience consecutive weeks of outflows, signaling potential challenges ahead for the financial sector.

While global stocks brace for modest gains in the coming months rather than a grand spectacle:

• Commercial property foreclosures in the United States see a drastic spike in the month of January, painting a somber picture of the economic landscape.
• Similarly, the German business outlook witnesses a slight uptick, although a shadow of gloom continues to loom over the horizon.
• Across the pond, UK consumer confidence wanes amidst concerns surrounding persistent inflationary pressures.

Further afield, New Zealand’s retail sales plummet for the eighth consecutive quarter, while China grapples with surging property foreclosures amidst a sluggish growth trajectory:

• Regulators reassure market participants that stock exchanges do not restrict share selling, calming jittery sentiments among investors.
• Beijing’s strategic interventions to curb a stock market rout spur optimism regarding China’s economic rebound, fostering hope for a recovery.
• Conversely, the US affirms that export curbs on China will spare legacy chips, delineating a nuanced approach towards bilateral trade relations.

As geopolitical tensions simmer, various international developments come to the fore:

• Israel unveils postwar plans for complete control over Gaza, adding a new layer of complexity to the volatile Middle Eastern region.
• On a different front, the US unveils plans for the most extensive sanction package against Russia in a two-year span, underscoring escalating diplomatic strains.
• Moreover, Adnoc’s $30 billion chemicals deal with Austria’s OMV hits an impasse, casting a shadow over the bilateral economic ties.

Transitioning to the technology and automotive sectors, notable developments send ripples through the industry:

• Nvidia witnesses a record surge in stock market value, fueling optimism and speculation within the tech realm.
• Concurrently, Air China explores options to increase its stake in Cathay Pacific, hinting at potential strategic realignments within the aviation sector.
• Capital One’s deal with Discover encompasses a substantial breakup fee, highlighting the intricacies of high-stakes corporate transactions.

Amidst this whirlwind, the energy sector experiences its own set of turbulence:

• US crude stockpiles witness an increase, while low refining rates contribute to the fluctuating dynamics of the oil market.
• Furthermore, Iraq reopens the North Refinery in Baiji after a decade-long closure, reshaping regional energy dynamics.
• Oil prices surge as global supply chains tighten, underscoring the delicate balance of the international crude market.