The battle for the future of the US economy is being led by technology stocks!
The Nasdaq 100 Index outperformed, and the Stoxx 600 Index gained more than 1%, with technology stocks leading the way after a decline. Stockholders appeared to shake off inflation concerns that had frightened markets as new signs of skyrocketing inflation emerged. A commodity index hit a two-year high as copper prices surpassed $10,000 per tonne and oil prices surpassed $66 per barrel.
Hugo Boss AG’s stock increased after first-quarter revenues met analyst estimates, while Novo Nordisk A/S increased its sales and profitability forecast for the year. The value of the dollar and Treasury bonds remained unchanged.
Since then, stocks have been steadily restoring their stability. The Secretary of the Treasury, Janet Yellen, rocked markets when she suggested that profits would need to rise gradually to keep the economy from overheating, but she later backtracked. Janet Louise Yellen is an American economist, civil servant, and policymaker who has been the Secretary of the Treasury of the United States since January 2021.
Despite the Federal Reserve’s assurance to investors that interest rates will remain near current levels through the recession, this, coupled with stock valuations near their 20-year high, could be enough to send the Nasdaq 100 to its lowest point since March.
According to Cecilia Chan, who was recently named as Chief Investment Officer, Asia-Pacific by HSBC Global Asset Management, the market’s focus will remain on growth restoration and how Covid evolves over time. She dismissed concerns about inflation and indicated that the central bank would retain its firm stance.
In other parts of the world, Asian stocks remained mixed. India’s stocks and bonds rose shortly after the central bank approved 500 billion rupees ($6.8 billion) in liquidity for banks to finance borrowing to vaccine producers, hospitals, and healthcare providers.
