Dow flirts with 40k, China fights homes bust

Dow flirts with 40k, China fights homes bust


A look at the day ahead in U.S. and global markets from Mike Dolan

After a week of worldwide stock market records, Friday seems set for a breather – with attention switching to the deepening Chinese housing bust and sweeping government plans to stop the rot there.

Thursday’s saw the blue-chip Dow Jones briefly top the 40,000 milestone as the S&P500, Nasdaq and MCSI all-country index all clocked all-time intraday highs too.

Signs of U.S. disinflation resuming and the wider economy cooling all stoked hopes that Federal Reserve interest rate cuts are indeed coming – with annual corporate profit growth and year-to-date stock index gains revving up into double digits.

As both a reflection of and spur to the new bullishness, the VIX ‘fear index’ of equity volatility subsided to its lowest level of the year on Friday. And futures held steady overnight after a modest tick back in the cash market on Thursday.

But as the Sino-U.S. geopolitical rivalry intensified this week with new trade tariffs…

2024-05-17 05:11:02
Article from finance.yahoo.com

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