The weak dollar strengthens stock market sentiment ? Nasdaq near highs
Today’s trading session brings a significant rebound in the stock market, supported by the weakening US dollar.
- The upward trend accelerated after 16:00 CET, following the release of the final data on consumer confidence and inflation expectations from the University of Michigan. Market sentiment beat forecasts, while both short- and long-term inflation expectations unexpectedly fell to 3.3% and 3%, respectively.
- The market interpreted today’s data as yet another indication that a soft landing scenario is still plausible. At the same time, we observe a marked retreat from the dollar and a decline in US Treasury yields. Dollar contracts (USDIDX) nearly erased yesterday’s gains. The dollar did not react to comments from the Fed’s Waller, who suggested that the neutral interest rate in the United States could be higher and possibly rising.
Today’s session sees notable gains among US BigTech companies. Apple and Meta (META.US) are performing particularly well. In contrast, Intuit (INTU.US) is seeing a nearly 8.5% sell-off despite strong results, as upbeat commentary on AI products hasn’t helped. Source: xStation5
Today’s US macroeconomic data:
Final consumer sentiment according to the University of Michigan is indicated at 69.1 compared to 67.7 expected and 67.4 previously
- The expectations index was 68.8 against 67 forecasts and 66.5 previously
- The current rating indicated 69.6 versus 68.8 expected and 68.8 previously
- 1-year inflation expectations: 3.3% versus 3.4% forecast and 3.5% previously
- 5-year inflation expectations: 3% versus 3.1% forecast and 3.1% previously
Durable goods orders (for April) increased m/m 0.7% versus -0.8% expected and 2.6% previously (revised to 0.8%)
US100 (M15) Chart
CFDs on the Nasdaq 100 (US100) are struggling to overcome resistance around 18,900 – 19,000 points, which coincides with the 71.6 Fibonacci retracement of yesterday’s descending wave.
Source: xStation 5
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