There were many important economic events this week, including the $SPX500 reaching an all-time high, the US Dollar hitting a 12-week record, and unexpected earnings season results. We've covered the highlights in our weekly recap, so join in to know more.
S&P 500 hits record 5,000 mark amid soaring valuations
The S&P 500 breaches the 5,000 mark, reaching historic highs and soaring valuations.
To be sure, this valuation is skewed by the heavy weighting of the index’s largest stocks. The so-called Magnificent Seven groups of mega stocks - which includes Apple ($AAPL), Microsoft ($MSFT), and Nvidia ($NVDA) — have a combined weighting of 29% in the index and trade at an average of 34 times earnings, according to LSEG Datastream data.
Despite the surge in stock prices, some investors are wary of the increasingly expensive market, as the S&P 500 has risen by 21% since late October.
Trading involves significant risk of loss.
Ralph Lauren stock ($RL) is on pace for the highest close in 9 years
Shares of Ralph Lauren are on pace for their highest close in nine years after the company’s third-quarter results topped expectations, helped by better sales in North America and strong growth in China.
The stock was up 17% to $172.24. That would be the highest close since early 2015.
On Thursday, the New-York-based luxury apparel company said that it expects to continue benefiting from its growing direct-to-consumer business, which represents about two-thirds of the overall business.
Trading involves significant risk of loss.
Gold price ($XAU/USD) to average $2,025 in 2024
Gold prices have largely trended sideways since late December. At face value, this appears somewhat counter to the improving economic data – with inflation in the advanced economies tracking closer to target in late 2023, which spurred a rally in both equity and bond markets.
The central bank purchases of Gold have been ramping up recently – notably in China and Russia – underpinning global demand.
According to economists at the National Australia Bank, gold prices are forecasted to average $2,025 in 2024, up from around $1,942 in 2023.
Trading involves significant risk of loss.
The US Dollar surges as yields rise on resilient jobs data
The US Dollar is trading higher against a basket of currencies ($EURUSD), although it remained below a 12-week peak reached earlier in the week. This movement followed an analysis of policymakers’ statements from the previous session, which suggested a prolonged period of higher interest rates. Another rise in Treasury yields also underpinned the greenback.
If the upside momentum continues, then look for buyers to attempt to breakout over the weekly high at 104.604. This would signal a resumption of the rally with traders eyeing 105.628 as the next potential target.
Trading involves significant risk of loss.
This concludes our weekly recap. Have a great weekend and see you next week! 👋
