Stocks rebound on strong data and AI interest – MarketPulse

• Global bond yields rise; 10-year Treasury rises 4.1bps to 3.762%
• Consumer Confidence hits highest levels since January 2022
• Dow eyes first gain in 7 trading days

US stocks are bouncing back after some strong US economic data gave a boost to consumer discretionary stocks and as investors piled back into AI trades. The losing streak had to end, but that doesn’t mean the market will resume.

US data

There was a lot of US economic data released today and the key takeaway was that the economy is not breaking just yet. The first key reading was durable goods and that surged, but the reason behind that was due to strong aircraft orders. The overall trend is expected to be softer, going forward as higher, borrowing costs and tighter lending from banks, will dampen demand.

We also got a couple housing reports, the case Shiller report showed home prices are stabilizing as prices recover, mainly because there’s just not enough supply. New home sales impressed with a buying spree that hit the highest levels in more than a year.

The main event was the Conference Board’s consumer confidence report which surged 7.2 points to 109.7, the best reading since January 2022. The strong consumer confidence report will likely suggest expectations are not for the labor market to deteriorate quickly, which should confirm expectations that a recession will not happen this year, but most likely next.

We also saw a couple fed regional surveys, the Richmond Fed manufacturing index remained in negative territory, and so did the Dallas Fed’s services activity report, which is in line with the other federal regional surveys. Overall the US economy is still chugging along, and that will complicate the disinflation process for the Fed. ​ Swap futures are still expecting one more rate hike by the Fed.

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Ed Moya

Senior Market Analyst, The Americas at OANDA

With more than 20 years’ trading experience, Ed Moya is a senior market analyst with OANDA, producing up-to-the-minute intermarket analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His views are trusted by the world’s most renowned global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.

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• Source: https://www.marketpulse.com/newsfeed/stocks-rebound-on-strong-data-and-ai-interest/emoya