The U.S. stock market showed little reaction to President Trump's aggressive actions in Venezuela, with investors viewing the event as unlikely to escalate into a larger conflict, and instead focusing on fundamentals like earnings growth and AI, supporting a bullish outlook for stocks.
Stocks rose on hopes the US government shutdown will end soon, boosting investor confidence in a potential Federal Reserve interest-rate cut, as markets react to resumed government functions and upcoming economic data releases.
The global stock market continues its rally driven by AI-related deals and partnerships, with tech stocks reaching new highs despite concerns over valuation and a US government shutdown. The S&P 500 is on its longest winning streak since July, and European markets also hit record levels, supported by strong commodity performances like gold and copper. However, some analysts warn that valuations may be overheated and further gains could be gradual.
Rigetti's stock (RGTI) reached a record high driven by recent quantum deals and positive investor sentiment, highlighting growing confidence in the company's quantum computing advancements.
Elon Musk bought about $1 billion worth of Tesla stock, boosting the company's share price, amid a $1 trillion pay package awarded to him by Tesla's board, highlighting investor confidence but raising questions about Tesla's future prospects.
Bitcoin's price has surged past $100,000, driven by investor optimism about the pro-crypto stance of the incoming Trump administration, which is expected to deregulate the industry. The nomination of crypto-friendly figures to key regulatory positions, such as Paul Atkins to the SEC, signals potential regulatory leniency. This optimism, coupled with the financial establishment's growing acceptance of bitcoin, including the introduction of bitcoin ETFs, has fueled the cryptocurrency's rise. However, concerns remain about the speculative nature of bitcoin's value and the potential for another market bubble.
United Airlines' stock soared by 12% following an impressive first-quarter earnings report, surpassing market expectations with revenue of $12.5 billion and an adjusted quarterly loss of 15 cents per share. Despite technical red flags such as bearish trends and oversold conditions, the company's strategic moves, including reaffirming full-year 2024 earnings expectations and announcing aircraft orders, demonstrate confidence in future performance. Investors are advised to closely monitor the stock's price movements amidst prevailing market dynamics.
The S&P 500 experienced a significant market sell-off, wiping out approximately $600 billion in market cap within two hours. The recent rally, driven by investor optimism surrounding anticipated rate cuts in 2024, came to a halt as investors likely moved to take profits following a massive surge in equities. Despite the Federal Reserve's plan to cut rates, macroeconomic uncertainties and sustained record-high policy rates contributed to the sell-off. The Nasdaq 100 ETF also experienced significant outflows.