Monday Market Closed

Dear Reader,

Welcome to another week. I hope you were able to accomplish a lot this past month and I wish you good vibes for June. 🤙 

I hope you all enjoyed your Memorial weekend. It’s times like these when you can sit back on the long weekend, relax, crack a brew and have time to realize why we work so hard.

So here’s to the simple times which are often the best of times. Sit back relax and

Enjoy the Alpha,

Market Indices & Commodities

What happened?
The Recap of the Week

• NVIDIA shares reach record high after beating earnings and revenue estimates for Q1📈

• EU ministers have approved AI law, banning certain AI systems 🇪🇺

• The Nasqac hit another record closing high. ✅

• UK announce a snap general election for July 4th.📃

•  The Justice department is suing Ticketmaster and its owner, Live Nation Entertainment. For alleged illegal monopoly. ⚖

Graph of the Day
Iran increased its stockpile of near bomb-grade uranium

News
What on the Horizon?

• Monday - Memorial Day holiday

• Tuesday - Scotiabank (BNS) and Cava Group (CAVA), report earnings.

• Wednesday - Federal Reserve Beige Book release, New York Fed President John C. Williams delivers remarks5, Salesforce, BMO Financial Group (BMO), Agilent Technologies (A), HP (HPQ), Dick’s Sporting Goods (DKS), Abercrombie & Fitch (ANF), and Chewy (CHWY) report earnings

• Thursday - Gross Domestic Product (GDP) - first revision (Q1), Costco Wholesale, Royal Bank of Canada (RY), Dell Technologies, Marvell Technology (MRVL), and Dollar General report earnings.

• Friday - Final day before Federal Reserve blackout period, Personal Consumption Expenditures (PCE) Index (April)

⭐ Corporate earnings reports will be in the spotlight again, with keen investors likely to focus their attention on financial updates from big tech.

The Secret Sauce
Will the bull market continue to run?

After a pretty wild bull run that has taken us from about October 2022 to now. We are going to try and see if it will continue to run on for the considering years.

Getting straight to the point, I believe this bull market has the legs and here’s why.  

⭐ Federal Reserve and Inflation: Even though the FED and inflation has been a mess recently I have reason to believe that inflation will moderate, allowing the Fed to cut interest rates later this year, which would boost market sentiment. This is because I believe some softening in the labor market will lead to slow wage growth, reducing service costs. Secondly, I think that the shelter and rent components of the inflation baskets will move lower in the months ahead, as they tend to lag the real-time trends, which have shown moderation in both home and rental prices. From this I anticipate the Federal Reserve might cut interest rates once or twice this year helping the stock market.

⭐ Economic and Earnings Growth: S&P 500 earnings are expected to grow by about 10-11%, driven by robust corporate performance, despite some economic slowdown signs. Thus, driving the bull market.

⭐ AI and Technology: Enthusiasm for AI technologies, particularly from companies like NVIDIA, continues to support market gains, with technology sectors leading the way. Over the past 1.5 years, U.S. markets have benefited tremendously from technology companies, as the enthusiasm around artificial intelligence and its growth prospects helped push stock markets higher.

Thank you  
That’s all Folks

Hey, thank you for checking out Monday Market closure. I hope you all have an amazing week and end May in style !

Cheers,