U.S. Stocks Strap In for a Winning Week
Last week the S&P 500 was on a roll, almost hitting the all‑time high you’d brag about on a wall‑chart. It’s the third straight week of gains, so if you’re counting up to “week 7” you’re officially a crypto‑free investor.
Broader Boom
Even other big players felt the lift:
- Value stocks out‑shined the growth crowd (for now).
- Trading volumes were on the quiet side—Wednesday hits the lowest trade volume of the year—proof that U.S. markets like nervous middle‑class bonds.
- Light or predictable economic calendar? Yup, the market’s been playing a very relaxed game.
Company Shockers
Some firms had a rough wobble because of the Q1 earnings season:
- Walt Disney fell 9.5% after beating earnings—because Uncle Sam re‑checks streaming subscriber stats. “Slow down or throw a $20 Disney park ticket sale!”
- Shopify’s shares sank 18.6% due to a slower revenue outlook. Clearly, people still need to pay for their sticky notes.
Economic Buzz
Key stats that should have tick‑ed a few nervous eyebrows:
- Jobless claims spiked to 231,000—re‑igniting the “unemployment is now that scary” conversation.
- Continuing claims jumped to 1.79 million, smashing a four‑week downward trend.
- Michigan consumer sentiment slid to 67.4, the lowest since six months ago. Inflation, unemployment & rates? All are making the public outrun its rent.
Bonds Beat
In case you’re into that side of the market:
- The 10‑year Treasury yield stayed stable.
- Municipal bonds rallied despite a heavy issuance—talk about “party favors.”
- Investment‑grade corporate bonds attracted money even during a busy issuance week—so, “yes, they’re still a great bet.”
- High‑yield bonds got a boost from the equity market’s mood swing.
Europe’s Carnival Beats Up
The pan‑European STOXX Europe 600 Index bounced 3.01%, thanks to surprisingly good earnings and the hopeful idea that major central banks might cut rates.
Notably:
- DAX, CAC 40, & FTSE MIB climbed noticeably.
- FTSE 100 went inland to a record high.
- Bank of England (BoE) kept rates at 5.25% but Phil Dick might hit youth with a June cut. The “sawbuck” scenario is nail‑dipping.
- BoE’s forecast now whispers of faster inflation cuts.
- UK adds a dash of recovery: 0.6% GDP growth in Q1 2024, ending a recession that began at the last holiday season.
- Sweden’s Riksbank dips rates by 0.25% for the first time since 2016—“We’re going to keep this warm!”
China’s Party Starts Early
Chinese stocks felt a light‑bulb moment thanks to the private holiday sales from Labor Day.
- Shanghai Composite: +1.6%.
- CSI 300 (blue‑chips): +1.72%.
- Hang Seng: +2.64%.
Tourism hits … 7.6% revenue growth versus last year’s holiday (domestic +12.7%, international +… not clear). Average spending per traveler dropped 11.5% from 2019—so clearly the travelers are very budget‑savvy.
Economic mix? Not all good, not all bad:
- Caixin/S&P global services: 52.5 in April, 16th month of expansion.
- Composite PMI: 52.8 (step up from 52.7).
- Exports (+1.5% YOY in April) outthere—10.5% decline reversal indeed!
- Imports up 8.4%, beating expectations – raw material surge is in full effect.
- Trade surplus: from $58.55B to $72.35B.
World’s Big Picture — “We’re All… Doing Fine”
Overall, the markets wobble forward, leaving a splash of optimism. The U.S. keeps moving upwards, Europe’s earnings are high‑spirited, and China looks ready for a lavish holiday. What’s the lesson: The world’s still moving anyways. “Keep the coffee brewing, because the bulls are only planning to ride until changes get larger than expected.”
Get real‑time updates when you’re on the go—subscribe now!
