There is no fear of another round of Fed hikes in the stock market.
Rather than fretting about higher rates, the market appears to be cheering on an economy strong enough to withstand higher prices (and better margins). It’s AI once again leading the way in perhaps a sign that some are seeing a more-productive and disinflationary future.
As usual, it’s Nvidia at the top, up 4.2% as it makes up ground following Friday’s brutal reversal.
NVDA daily
Another winner is Meta, which is up 3% in a rebound following Monday’s drop due to Donald Trump calling it an ‘enemy of the people’. Other gainers include Chinese tech stocks, Amazon, Microsoft and Costco.
The S&P 500 is up 0.9% behind an 11% jump in Oracle shares. It’s also getting help from the Gap and 3M.
However in a warning for the consumer, airline stocks are struggling.