S&P 500 and Nasdaq Recover as Investors Digest Fed Signals and Corporate Earnings

Vida Markets

Thursday 7th March 2024, 7:16 am Time to read: 6 mins.

Wall Street saw a modest uptick with the S&P 500 and Nasdaq Composite climbing higher, hinting at investor optimism amid a complex backdrop of economic indicators and corporate news. The session reflected a slightly hopeful market sentiment as investors digested Federal Reserve Chair Jerome Powell's latest comments on interest rates, alongside mixed movements in tech

Wall Street saw a modest uptick with the S&P 500 and Nasdaq Composite climbing higher, hinting at investor optimism amid a complex backdrop of economic indicators and corporate news. The session reflected a slightly hopeful market sentiment as investors digested Federal Reserve Chair Jerome Powell's latest comments on interest rates, alongside mixed movements in tech giants and regional banking stocks. With the S&P 500 and the Nasdaq Composite rising, the markets showcased resilience, navigating through the uncertainties surrounding Apple's consecutive declines and the troubles of New York Community Bancorp. Amid these dynamics, investors remained vigilant, noting both the sector-specific performances and the broader economic outlook shaped by Powell's testimony and recent employment data. 

Key Takeaways:

S&P 500 and Nasdaq Make Gains Amid Market Recovery Efforts: The S&P 500 Index rose by 0.51%, while the Nasdaq Composite gained 0.58%, as investors aimed to recuperate from recent losses, marking a positive shift following two consecutive days of declines. The Dow Jones Industrial Average also saw an uplift, adding 75.86 points, a 0.2% increase, despite Disney's more than 2% drop influencing the market's momentum.
European Markets Advance Post-UK Budget Announcement: European stock markets experienced a rebound, closing higher as the UK's 2024 budget announcement was absorbed by investors. The pan-European Stoxx 600 ended the day up by 0.4%, with technology stocks leading the way with a 1.35% increase, even as media stocks faced a slight decline. 
Asian Markets Recover from Early Losses, Led by Hong Kong: The Asian stock markets showed resilience, spearheaded by a notable performance in Hong Kong. The Hang Seng index had an intraday rise over 2%, contrasting with a dip in mainland Chinese stocks as the CSI 300 index fell by 0.41%. The region's market responses were mixed, with South Korea’s broader Kospi declining by 0.3%, whereas the Kosdaq index saw a 0.5% uptick. 
Federal Reserve Signals Potential Rate Cuts: Federal Reserve Chair Jerome Powell's testimony suggested that interest rates could be lowered later this year, with the central bank's policy rate likely at its peak for the current tightening cycle. This announcement has prompted investors to adopt a "wait-and-see" stance regarding future monetary policy directions.
Major Tech Stocks Show Mixed Performance: Despite the overall market gains, major technology firms displayed varied performances. Apple's share price declined (0.6%) for the sixth straight session, limiting broader market gains, whereas Nvidia saw an increase of over 3%. Alphabet and Tesla both experienced declines during the trading day, highlighting the tech sector's diverse reactions to market conditions.
Regional Banking Sector Faces Volatility: The SPDR S&P Regional Banking ETF (KRE) closed slightly lower amidst fluctuations, following New York Community Bancorp's announcement of a $1 billion capital raise. NYCB shares, however, rebounded by approximately 7.5% after a dramatic drop of over 40% earlier in the day, indicating market volatility in the banking sector.
Labour Market and Inflation Data Reflect Economic Trends: The US February ADP employment change reported a rise of 140,000 jobs, slightly below the expected 150,000, while January JOLTS job openings slightly exceeded anticipations, indicating a robust labour market. These figures play a crucial role in shaping investor sentiment and Federal Reserve policies.
Crude Oil's Advance Stalls as WTI Retreats After Approaching $80.00: Crude oil's attempt to break the $80.00 barrier faltered, as West Texas Intermediate (WTI) experienced a sharp pullback to $78.50. Despite an early rally from $77.50, WTI ended the day up about 1% from its opening price around $77.72. This shift in momentum toward sellers highlights the significance of the $80.00 level as a key resistance zone, with WTI's movements closely monitored around the 200-hour and 200-day Simple Moving Averages. 
FX Today:

GBP/USD Gains Momentum Following UK Budget Announcement: The British Pound saw a 0.31% increase against the US Dollar, trading at 1.2746, helped by the UK's spring budget revelations and comments from US Federal Reserve Chair Jerome Powell. The GBP/USD pair's movement hinted at testing the 1.2800 mark, as traders responded positively to policy announcements and Powell's dovish stance on future rate cuts.
USD/CAD Experiences Sharp Decline Amid BoC Rate Decision: The USD/CAD pair saw a significant downturn, dropping into 1.3510 from an intraday high near the 1.3600 handle following the Bank of Canada's decision to maintain its key overnight rate at 5%. The currency pair flirted with slipping back into the 1.3500 zone, reflecting the market's reaction to steady interest rates and dampened hopes for rate cuts, despite ongoing inflation concerns within Canada.
AUD/USD Breaks Key Resistance Levels, Eyeing Continued Momentum: The AUD/USD pair witnessed notable buying interest, marking one of the largest daily ranges of the year with a low to high movement of approximately 90 pips. Breaking through several critical resistance levels, including the 100 and 200-day moving averages around 0.6558, the pair showcased significant bullish momentum, positioning itself for potential further gains.
USD/JPY Challenges Support After Sideways Consolidation: Following a period of consolidation, the USD/JPY pair broke down below the 149.70 support level, pointing towards a potential shift in momentum. If this downward movement is sustained, sellers might target the 148.90 area, with further declines possibly bringing 147.50 into focus. Conversely, a reversal above 149.70 could reignite buying interest, potentially testing the 150.85 resistance zone.
Gold Reaches New Intraday All-Time High: Gold futures for April hit a remarkable intraday all-time high of $2,158.40 per ounce during Wednesday's trading, setting the stage for another potential record close. This milestone underscores gold's enduring value as a safe-haven asset, especially in times of economic uncertainty. Despite this nominal peak, when adjusted for inflation, gold's highest historical price remains at $3,460.77 per ounce, a record set back in January 1980. 
Market Movers:

Foot Locker's Outlook Causes Shares to Tumble: Foot Locker's shares nosedived 29.4% after the retailer forecasted a challenging year ahead, with expected full-year adjusted earnings per share significantly below market estimates. The announcement marked a setback for the company, delaying its profitability goals and underscoring the retail sector's uncertainties.
CrowdStrike's Earnings Beat Sparks Rally: CrowdStrike's shares surged 10.8% after the cybersecurity company exceeded Wall Street's quarterly earnings estimates and provided strong future guidance. Reporting adjusted earnings of 95 cents per share on $845 million in revenue, the firm also reaffirmed its target of achieving $10 billion in annual recurring revenue by 2030, igniting investor enthusiasm.
JD.com Announces Share Purchase Program, Shares Soar: Chinese e-commerce giant JD.com witnessed a 16.2% jump in its shares following a quarterly revenue increase announcement and the initiation of a $3 billion share purchase program. Scheduled to run through March 2027, this move underscored the company's financial strength and commitment to enhancing shareholder value.
Nordstrom Faces Downturn on Muted 2024 Outlook: Shares of Nordstrom plummeted by 16.1% as the department store chain delivered a cautious forecast for 2024, anticipating full-year revenue to fluctuate between a 2% decline and a 1% increase compared to the previous year, signalling potential headwinds in the retail sector.
New York Community Bancorp Recovers After Capital Raise Announcement: Following a dramatic early session drop of over 40%, New York Community Bancorp's shares rebounded, closing up 7.5%. The bank's announcement of a $1 billion capital raise was a pivotal factor in the recovery, highlighting the volatile banking sector's current dynamics.
Thor Industries Reports Disappointing Revenue, Stock Plummets: Recreational vehicle manufacturer Thor Industries saw its shares decline by 15.4% after reporting second-quarter revenue of $2.21 billion, missing the FactSet consensus estimate of $2.27 billion, reflecting the challenges facing the RV industry.
Coinbase Global Rides Crypto Wave, Shares Advance: As cryptocurrency prices climbed, Coinbase Global's shares gained 10.1%, benefiting from the rising interest in digital currencies. Bitcoin's ascent to new heights and Ether's surge to its highest level since January 2022 contributed to the positive momentum for Coinbase.
Box Exceeds Earnings Expectations, Stock Rises: Cloud content management company Box saw its shares increase by 8.6% after reporting fourth-quarter earnings that beat analysts' forecasts. With earnings of 42 cents per share and revenue aligning with expectations, Box also announced an integration with Microsoft's Azure OpenAI Service, pointing to innovative growth strategies.
Wednesday's trading session reflected a slightly optimistic outlook from investors, balancing the Federal Reserve's potential policy shifts with a mixed bag of corporate earnings. As the market navigates through these uncertain times, the resilience shown in key indices and the dynamic responses across sectors highlight the importance of strategic investment decisions. Moving forward, market participants will likely continue to monitor economic indicators and corporate performance closely, seeking opportunities amid this volatility. This approach underscores the evolving nature of the financial landscape, where adaptability and insight remain most important.


See live prices

Sell Buy

See more live prices

Prices above subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

  1. Register

    Signup to Vida Markets, verify, and set up your account

  2. Funds

    Deposit funds to your trading account

  3. Start

    Find opportunities and take them to your advantage

Live the ultimate experience of trading with Vida Markets in 3 simple steps

Open your trading account and get started.