On the evening of the 26th Beijing time, US stocks opened higher on Tuesday. After the fall in US stocks yesterday, investors tried to push the stock market to continue its recent rise to new highs. The three major stock indexes are all likely to record gains in March. This week, the market is focusing on the PCE inflation index and the Federal Reserve's interest rate cut path.
As of press release, the NASDAQ is up 0.42%, the S&P 500 is up 0.24%, and the Dow is up 0.05%.
Driven by healthy US economic data, the Federal Reserve's interest rate cut bets, and optimism brought about by the AI boom, the S&P 500 index rose nearly 10% this year.
Goldman Sachs strategists predict that the S&P 500 is expected to rush to 6,000 points in 2024.
Warren Pies, co-founder of 3Fourteen Research, said that although there are concerns that the market rebound has entered the overbought region, investors should not under-allocate stocks up to now.
He said, “There are many people who have too low positions or insufficient shares in this market, and they will scramble to increase their positions. I think the combination of a soft landing, support from the Federal Reserve, and underinvested strategists and institutions means that US stocks can continue for the time being.”
Vincent Juvyns, a global market strategist at J.P. Morgan Asset Management, said that the clear improvement in the economic outlook means that the focus will shift to profits in the second quarter. He said, “US stocks are very expensive, but they aren't ridiculously expensive. But without a profit boost, it would be dangerous to bet on a further rise in the stock market.”
A Morgan Stanley strategist also warned that if the company's profits do not grow at an accelerated pace, then it is difficult to reasonably overvalue the stock market.
Bank of America analysts released an optimistic research report, saying that the main theme of US stocks will be “epic bulls” before 2030. According to the bank's research report, the long-term bull market for US stocks is about to enter its 11th year. More importantly, from a technical analysis perspective, the S&P 500 index is expected to rise further strongly in the next few years, thus fully continuing the “epic long bull” trend.
Bank of America predicts that this round of “long bulls” is expected to continue until around 2030, and the S&P 500 index is expected to rise to 7,000 points by the end of 2026.
In terms of Tuesday's economic data, US durable goods orders increased 1.4% month-on-month in February, and are expected to be 1.1%, compared with the previous value of -6.20%.
Excluding aircraft non-defense capital, US durable goods orders increased 0.7% month-on-month in February. Expected 0.10%, compared with the previous value of 0.00%.
Excluding transportation products, US durable goods orders increased 0.5% month-on-month in February. Expected 0.40%, compared with the previous value of -0.40%.
Excluding defense capital, US durable goods orders increased 2.2% month-on-month in February, compared with the previous value of -7.4%.
Friday (March 29, 2024) is the Good Friday holiday in the US. At that time, many markets will be closed due to the Easter holiday, but the much-publicized personal consumption expenditure price (PCE) index will be announced on this day, and Federal Reserve Chairman Powell will deliver a speech on the same day.
Individual stocks in focus
Star technology stocks generally rose, Tesla rose more than 5%, Meta rose more than 1%, and Nvidia, Microsoft, and Google followed suit.
Trends in popular Chinese securities diverged. Tencent Music rose more than 3%, Ideal rose nearly 1%, Ali and Baidu rose slightly, New Oriental and NIO fell more than 2%, Pinduoduo fell more than 1%, and JD fell slightly.
In terms of individual stocks,$Tesla (TSLA.US)$The increase of more than 5% will provide a one-month free fully automated driving (FSD) experience for new car buyers in the US and Canada.
$Super Micro Computer (SMCI.US)$With an increase of more than 3%, Xiaomo was the first to receive an “increase in weight” rating, with a target price of 1,150 US dollars.
$Reddit (RDDT.US)$Surging more than 13%, options attracted a large number of bullish bets.
$Trump Media & Technology (DJT.US)$It surged more than 46% and began trading on the NASDAQ today.
$Viking Therapeutics (VKTX.US)$It surged 26%, and the latest test results for oral diet pills were positive.
editor/tolk