Markets at a Glance: S&P higher, Oil Gained
Asian stock markets and U.S. equity futures slightly rose following U.S. shares’ record gain caused by investors’ optimism over an economic rebound driven by stimulus.
The S&P reached a first-time close of above 4,000 causing an increase in U.S. equity futures. President Joe Biden’s $2.25 trillion spending plan combined with signs of accelerated economic growth prompted a high increase in U.S. tech shares and value stocks.
U.S. treasuries bounced back after their worst quarter in years while 10-year yields posted losses and fell below 1.7%. The dollar retreated while oil posted gains after the OPEC+ group decided to gradually increase its oil output.
Signs of a stronger U.S. economy have got investors pleased. Manufacturing grew in March and the NFP report job-market data due today are expected to rise along with other economic growth indicators. President Biden’s infrastructure-rebuild plans strengthen the outlook despite concerns about the possibility of the plan reaching full completion.
Investors are not discouraged by a worsening coronavirus worldwide picture including lockdowns and closing borders. They follow the markets closely assessing inflation risk during the economic rebound. Analysts point out that before inflation, there is reflation — the first stage of economic recovery after a period of economic decline — and that is the current main focus of investors.
Traders are bracing for the NFP report which could send tidal waves in the holiday-shortened trading season. Strong data could cause a jump in benchmark yields.
Events to watch this week:
Make sure you check the NFP employment report for March, coming out today, Friday, and keep in mind that today is Good Friday which marks the start of the Easter weekend in some countries including the U.S., the U.K., France, Germany, Australia, and Canada. Many markets around the world are closed due to holidays including Australia, Hong Kong, Singapore, and India markets.
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