From Nasdaq.: 2024-03-27 10:24:42

Market analysis from Nasdaq’s IR team suggests a June start to rate cuts by the Fed and ECB, with potential risks to inflation and growth. US small caps facing worst performance compared to larger stocks in over 20 years. Global stocks appear overvalued, indicating the importance of quality stocks and earnings growth for a sustained rally. Barclays reports active equity managers are fully positioned, while JPM poll indicates positive to mixed sentiment and caution on increasing equity exposure.

Japanese yen hits 34-year low against the dollar, signaling currency depreciation and inflation. Tech stocks see strong inflows, while energy and utilities remain unloved. Market impacted by yields, Fed policy, inflation, and growth trade-off, with questions about government spending and debt driving inflation. Dovish central banks may lead to higher inflation and continued rise in gold prices. Rate cuts could potentially drive more capital into equities.

In the news: Equities, gold, and the dollar are on the rise, while T-Yields and oil prices drop. Key events for the week include a light macroeconomic calendar. Market wrap-up sees S&P 500 turn lower, retail investors embrace meme stocks, and Baltimore bridge collapse disrupts coal exports. China’s industrial profits rise, while Spanish inflation quickens and Swedish central bank hints at rate cuts. Biden faces backlash over UN vote and companies like J&J and Apple make headlines. Oil market sees product stocks dip ahead of export surge, and new Venezuelan opposition candidate could impact US sanctions.



Read more at Nasdaq.:: In This Bifurcated Market, Will Markets Sell Off?