Bullish sentiment continues to say no amongst particular person traders as inflation stays elevated. In line with the American Affiliation of Particular person Traders (AAII) Sentiment survey, optimism concerning the inventory market’s short-term outlook decreased for the second consecutive week. At present, 43.4% of respondents categorical optimism, in comparison with 47.3% and 50% within the earlier two weeks. Conversely, bearish sentiment rose to 24% from final week’s 22.2%. Impartial sentiments additionally elevated to 32.5% this week, up from 30.5% the earlier week.
The latest shopper inflation report, which exceeded economists’ expectations by climbing 0.4% in March, dampened hopes for near-term Federal Reserve fee cuts. Analyst James Kostohryz means that barring vital disruptions like a battle or oil provide disaster, there’s little justification for fee cuts earlier than October 2024. Nonetheless, President Joe Biden maintains his prediction of Fed fee cuts by year-end.
Market futures for the Nasdaq, S&P, and Dow edged greater on Thursday regardless of latest declines. The S&P 500 (SP500) fell practically 1% over the previous week, whereas the Dow Jones Industrial Common (^DJI) declined over 1%, and the NASDAQ Composite Index dropped 0.6%. The NASDAQ 100 Index noticed a decline of 0.8%.
Within the cryptocurrency and commodities markets, Bitcoin USD (BTC-USD) rose 4% since final Thursday, whereas Gold elevated by practically 3%. Gold futures achieved one other file excessive settlement on Tuesday earlier than experiencing a slight pullback on Wednesday.
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