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Tech Stocks Surge on Oracle-NVIDIA Partnership
Tuesday saw significant gains in the stock market, driven by ongoing optimism surrounding artificial intelligence (AI) technologies. Cloud computing giant Oracle Corporation’s better-than-expected earnings announcement and its plan to partner with NVIDIA Corporation for AI initiatives spurred a rally in tech stocks.
NVIDIA Leads the Charge
NVIDIA, the third-largest U.S. company by market capitalization, experienced a notable 7% surge on Tuesday, with premarket trading indicating further gains. This positive momentum extended to other AI-exposed stocks, including Microsoft Corporation, Alphabet, and Meta Platforms Inc, which saw gains ranging from 0.6% to 4%.
Wall Street Reacts to CPI Data
Despite hotter-than-expected Consumer Price Index (CPI) data for February, which indicated persistent inflation above the Federal Reserve’s 2% annual target range, Wall Street largely remained focused on the tech sector’s strength. While the CPI data raised concerns about sticky inflation and its impact on interest rate decisions, market expectations still leaned towards rate cuts by June 2024.
Focus on Retail Data and PPI
Attention now turns to Producer Price Index (PPI) and retail data scheduled for Thursday, which will provide further insights into U.S. inflation trends and consumer spending resilience. Despite the hot CPI reading, Wall Street appeared relatively unfazed, with investors awaiting additional cues from upcoming economic indicators.
Oil Prices Edge Up on Inventory Draw and OPEC Outlook
In the energy markets, oil prices rose 0.4% during early New York trading on Wednesday, buoyed by industry data revealing an unexpected decline in U.S. inventories for the week ending March 8. The American Petroleum Institute (API) reported a significant 5.5 million barrel drawdown, contrasting with expectations of a 0.4 million barrel build.
OPEC Maintains Positive Crude Demand Outlook
Additionally, sentiment towards oil markets received a boost from the Organization of the Petroleum Exporting Countries (OPEC), which reaffirmed its outlook on improving crude demand for 2024 and 2025 in its monthly report. Despite these gains, Brent and West Texas Intermediate (WTI) prices remained within a trading range of $75 to $85 per barrel, with concerns over increased U.S. crude production tempering further upside.
Looking Ahead
As markets await the International Energy Agency’s monthly report later this week, attention remains focused on economic data releases and geopolitical developments for further insights into market trends and potential price movements.
Impact of CPI Data on Metal Markets
The release of Tuesday’s Consumer Price Index (CPI) data had a significant effect on metal markets, particularly following a recent surge in gold prices. Spot prices for gold experienced a 2% decline from their record high of nearly $2,200 per ounce, now hovering in the mid-to-high $2,150 range.
Retreat in Precious Metals
The decline in gold prices was mirrored by other precious metals, albeit to a lesser extent. Wednesday saw a slight retreat across metal markets, as investors awaited further guidance on U.S. interest rates from upcoming data releases later in the week.
Japanese Stocks Extend Losses
Meanwhile, Japanese stocks continued their downward trend, with focus shifting to the Bank of Japan’s (BOJ) policy pivot. The market sentiment remained cautious amid uncertainties surrounding the central bank’s stance and its potential impact on the Japanese economy.
As markets navigate through evolving economic indicators and central bank policies, investors remain vigilant for any developments that could influence trading activities in metal markets and Japanese equities.
OP Wire Trade Plan-
Today I’ll be skiing and with very little cell coverage but if I were trading I’d be using AC&I and Secret Sauce to target some put scalps soon. OP chat should provide great ideas per usual. Stack and Protect! Oh, and enjoy the live session tonight!
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