Global

The general market sentiment remained mixed throughout the week. All major US indexes ended higher, while European political uncertainty dragged down the major indexes. On the other hand, Asian indices appeared to be disconnected from the global market, dancing to their own beat. 

During the week, gold fell by 3.52%, showing that investors are gradually shifting towards riskier assets in expectation of interest rate cuts in the coming months, which could propel the stock market higher. Brent Crude continues to trade below the $80 level.

Let’s take a look at how the major stock market indices did this week

Index	Previous Day Change (%)	WoW Change (%)
US Markets
Dow Jones	-0.15	-0.54
S&P 500	-0.04	1.58
Nasdaq	0.12	3.24
European Markets
FTSE 100	-0.21	-1.19
CAC 40	-2.73	-6.23
DAX	-1.46	-2.99
Asian Markets
Nifty 50	0.29	0.28
Nikkei 225	0.24	0.34
Straits Times	-0.82	-1.00
Hang Seng	-0.95	-2.31
Taiwan Weighted	0.86	2.96
KOSPI	0.13	1.31
SET Composite	-0.40	-1.96
Jakarta Composite	-1.44	-2.36
Shanghai Composite	0.12	-0.61

US Markets

Fed Chair Jerome Powell kept the key interest rates steady in the latest monetary policy announcement because he thinks inflation is still not under full control. However, he revised his outlook to just one rate cut in 2024. 

There was some good news on the inflation front during the week. Core inflation fell to 3.4%, the lowest level since April 2021. 

Dow Jones

The Dow Jones Industrial Average Index has been trading in a range since the start of the month. In Friday’s session, the index traded primarily flat and was down slightly by 0.15%, and on a week-on-week basis, it was down by 0.54%. 

S&P 500

The index saw some higher-level profit bookings on Friday ahead of the weekend. The general sentiment remains highly bullish. On a weekly basis, the index closed higher by 1.58%.

Nasdaq

The demand for AI stocks increased the tech-heavy Nasdaq index during the week. On Friday, the index traded on a flat note and was slightly up by 0.12. On a week-on-week basis, it was up by 3.24%.

European Markets

Political uncertainty in Europe kept the market highly volatile. Meanwhile, ECB President Christine Lagarde confirmed that restrictive monetary policy will continue for the rest of the year and not to expect any rate cuts soon. 

FTSE 100

The slowdown in the British housing market in May affected investors’ sentiment as prospects of imminent rate cuts by the Bank of England reduced. On Friday, the FTSE 100 was down 0.21%, and on a week-on-week basis, it was down by 1.19%. 

CAC 40

French President Macron’s dissolution of the National Assembly kept the market highly volatile. On Friday, CAC 40 fell by 2.73%, concluding the week with a cumulative loss of 6.23%.

DAX

Large outflows weighed on the German market due to the uncertain political situation. On Friday, the DAX was down by 1.46%, and on a week-on-week basis, the index was down by 2.99%.

Asian Markets

Major indexes in the Asian market traded on a mixed note throughout the week and were primarily affected by domestic factors. However, the market continues to keep a close eye on global development, especially the comments by central banks around rate cuts. Let’s have a close look at how the different Asian indices performed during the week. 

Nifty 50

The Indian stock market continued to witness increased volatility during the week; however, the broader sentiment stayed positive because of the strong footing of the Indian economy. 

In Friday’s session, the Nifty 50 was slightly up by 0.29%, and week-on-week, it was up by 0.28%. 

Nikkei 225

The Bank of Japan kept the policy rates unchanged and also decided to reduce the bond buying exercise starting this month, which investors see as a dovish move. 

In Friday’s session, Nkkei 225 traded flat primarily and was up by 0.24%. The index concluded the week with a minor gain of 0.34%.

Straits Times

The Strait Times, Singapore’s leading stock market index, performed weakly throughout the week. It fell 0.82% on Friday and ended the week down by 1%.

Hang Seng

Weakness in growth stocks pulled down the index during the week. On Friday, the index was down by 0.95% and ended the week with a cumulative loss of 2.31%. 

Taiwan Weighted

Gains in electronic, semiconductor, and other electronic stocks during the week lifted the index. On Friday, it was up by 0.86%, and on a week-on-week basis, it was up by 2.96%. 

KOSPI

KOSPI continues to scale higher despite mixed sentiment. On Friday, the index was slightly up by 0.13% and closed the week with a cumulative gain of 1.31%. 

SET Composite

Thailand stocks declined on Friday, with the broader index, SET Composite, dropping by 0.40%. On a week-on-week basis, the index was down by 1.96%. 

Jakarta Composite

After Morgan Stanley downgraded the Indonesian stock market to underweight, the broader market was negatively affected. In Friday’s session, the Jakarta Composite was down by 1.44%, taking the total loss for the week to 2.36%. 

Shanghai Composite

China’s benchmark Shanghai Composite Index showcased a mixed performance during the week. In Friday’s session, the index was slightly up by 0.12%, but on a week-on-week basis, it closed lower by 0.61%.  

Wrapping Up

Looking ahead, the global markets remain influenced by domestic and international factors. While the US markets show resilience amidst inflation control efforts, political uncertainty weighs on European indices. Asian markets, driven by local dynamics, are cautiously optimistic. As we move forward, anticipating interest rate cuts and improving economic indicators may steer market sentiment positively. Investors should stay attuned to these developments for informed decision-making.

*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

Remember that feeling of setting a new personal best? That’s precisely how the S&P 500 and Nasdaq indices felt on Tuesday, June 11th, 2024, as they closed at record highs! But wait a minute before you begin celebrating; the story has a few twists. 

This week is packed with potentially market-moving events, and investors are cautiously optimistic. They are keeping a watchful eye on upcoming economic data and the Federal Reserve’s policy decisions. Let’s break down what happened and what’s coming up next.

S&P 500 & Nasdaq: A Look Back

US stocks closed in a mixed bag on Tuesday. The S&P 500, the benchmark index for large-cap US stocks, increased slightly by 0.27%, settling at a record 5,375.32. 

The tech-heavy Nasdaq followed suit, closing at an all-time high of 17,343.55, a gain of 0.88%. However, the Dow Jones Industrial Average, which tracks 30 large blue-chip companies, dipped slightly by 0.31% to close at 38,742.42.

Global Market Performance

While Wall Street saw some key indices reach new highs, the global market story wasn’t entirely rosy. Here’s a quick snapshot:

• European Markets Subdued: Major European markets like the FTSE 100 in London and the CAC 40 in Paris closed primarily flat or with slight declines. This cautious sentiment might reflect investor concerns about the upcoming economic data and central bank decisions.
• Asian Markets Mixed: Asian markets also presented a mixed picture. Japan’s Nikkei 225 closed lower by 0.03%, while China’s Shanghai Composite Index managed a small gain of 0.1%. This regional disparity could be attributed to individual country-specific factors and varying investor outlooks.

Also Read: Top Semiconductor Stocks in India

What Fueled the US Rally?

Despite the global mixed bag, a few factors might have contributed to the positive performance in the US:

• Investor Eye on Upcoming Events: Investors might have adopted a wait-and-see approach with the Federal Reserve meeting and the crucial CPI report looming. This cautious optimism could have contributed to the modest gains in the S&P 500 and Nasdaq.
• Apple Soars: Shares of Apple jumped a significant 7%, buoyed by the excitement surrounding their WWDC event. This positive performance from a major tech giant might have also rippled through the broader market.

Top 10 companies of the S&P 500

The S&P 500 is a stock market index that tracks the performance of 500 large-cap companies listed on stock exchanges in the United States. Here’s a look at the top 10 S&P 500 companies by index weight:

Company	Index Weight	Market Cap
Microsoft	6.85%	$2.89 trillion
Apple	5.85%	$2.47 trillion
Nvidia Corp.	5.05%	$2.13 trillion
Amazon.com Inc.	3.79%	$1.59 trillion
Alphabet Class A	2.72%	$959 billion
Meta Platforms Class A	2.42%	$946 billion
Alphabet Class C	1.92%	$812 billion
Berkshire Hathaway Class B	1.71%	$721 billion
Eli Lilly & Co. (LLY)	1.47%	$622 billion
Broadcom	1.35%	$572 billion

1. Microsoft (MSFT): A household name in tech, Microsoft is the powerhouse behind the Windows operating system. Its recent success hinges on the strength of its cloud computing services (Azure) and advancements in artificial intelligence.
2. Apple (AAPL): Apple revolutionized consumer electronics with its iconic iPhone, iPad, and Mac products. It was the first US company to reach a market cap of $1 trillion (2018) and $2 trillion (2020), exceeding $3 trillion in early 2022.
3. Nvidia Corp. (NVDA): A leader in artificial intelligence and graphics processing units (GPUs), Nvidia is at the forefront of technological innovation. They created the world’s first cloud-based AI supercomputer and continue to push boundaries with their advancements in AI technology.
4. Amazon.com Inc. (AMZN): The e-commerce giant Amazon has transformed online shopping. Beyond retail, they offer streaming services, consumer electronics (Kindle), smart home devices (Alexa), and cloud computing (Amazon Web Services).
5. Alphabet Class A (GOOGL): Alphabet, Google’s parent company, remains a dominant force in search and cloud-based services. Recent revenue growth has translated to strong earnings per share.
6. Meta Platforms Class A (META): Formerly known as Facebook, Meta Platforms is moving beyond traditional social media and focusing on virtual reality (Meta Quest VR headsets) and augmented reality technologies.
7. Alphabet Class C (GOOG): This is another share class of Alphabet, created to limit outside influence over the company’s direction.
8. Berkshire Hathaway Class B (BRK.B): Led by legendary investor Warren Buffett, Berkshire Hathaway is a holding company known for its value investing approach. It boasts some of any US company’s highest revenues and share prices.
9. Eli Lilly & Co. (LLY): A major pharmaceutical company recognized for its ethical business practices, Eli Lilly focuses on cancer, diabetes, Alzheimer’s, and pain management.
10. Broadcom Inc. (AVGO): Broadcom’s reach extends across various sectors, from semiconductors and wireless technology to data centers and cybersecurity solutions. They play a crucial role in developing smartphones, GPS, Wi-Fi routers, etc.

Key Events on the Horizon

The record highs are impressive, but the market can be quite volatile. Here are two major events that could significantly impact markets in the coming days:

• Federal Reserve Policy Decision: The Federal Reserve’s two-day policy meeting concludes on Wednesday, June 12th. Investors are eagerly awaiting Jerome Powell’s remarks, particularly regarding the future direction of interest rates. While no change in policy is expected, any hints about potential rate cuts later in the year could influence investor sentiment.
• Consumer Price Index (CPI) Report: On Wednesday, the Bureau of Labor Statistics releases the highly anticipated CPI data. This report tracks inflation levels, a key concern for consumers and investors. A cooler-than-expected inflation reading could be seen as positive news, potentially leading to a more dovish stance from the Fed. However, a higher-than-expected inflation number could trigger market jitters.

The Final Word

The record highs achieved by the S&P 500 and Nasdaq might seem like a cause for celebration. However, it’s crucial to remember that upcoming events, particularly the Fed decision and CPI report, could significantly impact market direction. Investors should stay informed, closely monitor these events, and adjust their strategies accordingly.

*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

This week, all major indices performed mixed due to conflicting economic indicators. Investors are shifting focus from the central bank’s interest rate cuts to persistent inflation and governments’ failure to bring it below the target.

Despite inflation exceeding the target range and high interest rates, all major countries report an uptick in economic activities. This trend lets central banks take a measured approach to interest rate cuts without acting hastily. 

During the week, gold was down 1.46%, as indicators suggest it has entered a bearish phase. And Brend Crude closed below $80, falling by 2.21%. 

Snapshot of how the major stock market indices did this week

Index	Previous Day Change (%)	WoW Change (%)
US Markets
Dow Jones	-0.22	0.29
S&P 500	-0.11	1.32
Nasdaq	-0.23	2.38
European Markets
FTSE 100	-0.48	-0.36
CAC 40	-0.48	0.11
DAX	-0.51	0.32
Asian Markets
Nifty 50	2.05	0.66
Nikkei 225	-0.05	0.51
Straits Times	0.00	-0.17
Hang Seng	-0.60	1.59
Taiwan Weighted	-0.20	3.23
KOSPI	1.22	3.27
SET Composite	0.32	-0.96
Jakarta Composite	-1.12	-1.04
Shanghai Composite	0.08	-1.15

US Markets

Concerns of slowing growth alongside high inflation led to investor worry. US Manufacturing Activity slowed down for a second month in May as orders for new goods dropped the most in two years. Also, job openings in April fell to their lowest level since February 2022. However, the services sector compensated for the loss as it climbed to its highest level in nine months. 

Dow Jones

The Dow Jones Industrial Average Index felt the impact of the decline in new goods orders as consumer defensive and consumer cyclical stocks declined. On Friday, the index traded flat primarily but on a bearish note, but over the week, it was up by 0.29%.

S&P 500

The broader S&P 500 index swung between gains and losses due to mixed investor sentiment. In Friday’s session, the index traded flat, slightly down by 0.11%. However, on a week-on-week basis, it was up by 1.32%. 

Nasdaq

Profit booking on the week’s last trading day resulted in the Nasdaq registering a minor loss of 0.23% after the index inched near historic highs. On a week-on-week basis, it was up by 2.39%. 

European Markets

It was a historic week as the European Central Bank cut the interest rate by 25 bps to 3.75% for the first time in five years. However, the central bank refrained from giving a timetable for future rate cuts. In the commentary, the bank raised the inflation target to 2.5% in 2024 from the previous estimate of 2.3%. 

FTSE 100

With an improving economic growth outlook, the British Chambers of Commerce estimated that the UK’s GDP will grow by 0.8% in 2024 and 1% in 2025.

During the week, the primary stock market, the FTSE 100, traded flat and was slightly down by 0.36%.

CAC 40

French equities traded lower during Friday’s session as losses in aerospace, defense, industrial engineering, and general financial pulled the index down. In Friday’s session, CAC 40 was down by 0.48% but concluded the week with a minor gain of 0.11%. 

DAX

The German economy is slowly gaining momentum but is yet to witness a full recovery in private consumption and industrial production, which is also reflected in the stock market gains. 

In Friday’s session, the index was down by 0.51% but up by 0.32% week over week.

Asian Markets

The Asian market followed the global cues as all major indices showcased mixed performances. Various factors influenced this week’s performance. Let’s check the performance of all major Asian indices. 

Nifty 50

Heightened volatility in the Indian stock market persisted during the week amidst the announcement of election results. Despite the significant crash in Tuesday’s session, the market recovered all the losses in the subsequent three trading sessions.

In Friday’s session, the Nifty 50 was up by 2.05%, and week-on-week, it was up by 0.66%. 

Nikkei 225

Japanese stock markets generated mixed weekly returns. In Friday’s session, Nkkei 225 traded flat without loss or gain. The index concluded the week with a minor increase of 0.51%.

Straits Times

On Friday, Singapore’s primary stock market index, Strait Times, was flat. No significant movement was witnessed during the week, which concluded with a slight loss of 0.17%.

Hang Seng

Improvement in market sentiment and Mainland China inflows support the Hong Kong market. The Hang Seng component index is trading above its key support level of 200-day moving average and has increased steadily in the past month. During Friday’s session, the index was down by 0.6%, but on a week-on-week basis, it was up by 1.59%. 

Taiwan Weighted

After the previous week’s drubbing, The Taiwan Capitalization Weighted Stock Index recorded one of its best weeks, rising by 3.23%. However, on Friday, the index was down by 0.20%.

KOSPI

During the week, the Bank of Korea updated its annual GDP estimates, which helped to boost investor sentiment. On Friday, the KOSPI rose 1.27%, bringing the week’s total gains to 3.27%. 

SET Composite

The decline in financial services stocks pulled the broader – SET Composite index down during the week. On Friday, the index was up by 0.32%, and on a week-on-week basis, it was down by 0.96%. 

Jakarta Composite

The Indonesian market faced selling pressure on Friday, ending the day lower by 1.12%. The index concluded with a cumulative loss of 1.04% on a week-on-week basis. 

Shanghai Composite

China’s benchmark Shanghai Composite Index showcased a muted performance on Friday’s session, rising by 0.08%. On a week-on-week basis, the index closed lower by 1.15%.  

Wrapping Up

Despite worries about a slowing economy and increasing inflation, US markets finished the week on a cautious note. European markets also rose, driven by the ECB’s rate cut and stronger economic outlooks. Meanwhile, Asian markets performed differently due to various domestic and global challenges. Corporate earnings reports and central bank commentary may continue to affect investor sentiment. Keeping an eye on these events will be important for managing the market in the coming weeks.

Global stock markets painted a mixed picture this week, with some regions experiencing gains while others faced losses. While the overall trend for the month remained positive, the final days saw a pullback across several key indices.

Various factors influenced this week’s performance, including concerns over inflation and interest rates and sector-specific trends like the impact of rising home prices on the US housing market.

Gold fell 0.27%, whereas Crude Oil fell by o.89% this week. 

A quick look at the global market performance last week

Index	Previous Day Change (%)	WoW Change (%)
US Markets
Dow Jones	1.51	-0.98
S&P 500	0.8	-0.51
Nasdaq	-0.01	-1.1
European Markets
FTSE 100	0.54	-0.51
CAC 40	0.18	-1.26
DAX	0.01	-1.05
Asian Markets
Nifty 50	0.19	-1.98
GIFT Nifty	0.24	-1.25
Nikkei 225	1.13	-0.41
Straits Times	0.04	0.6
Hang Seng	-0.83	-2.84
Taiwan Weighted	-0.90	-1.81
KOSPI	0.04	-1.9
SET Composite	-0.44	-1.38
Jakarta Composite	-0.91	-2.87
Shanghai Composite	-0.16	-0.07

US Markets

Wall Street closed in the red this week, with all three major indices – Dow Jones, S&P 500, and Nasdaq – experiencing losses. As far as the entire month is concerned, it was a positive one on a down note, with small caps and value stocks outperforming. Rising home prices and mortgage rates seem to impact the housing market, with a significant drop in mortgage applications and pending home sales. Bond markets were quiet after the holiday, but concerns remain due to weak Treasury auctions and recent weakness in high-yield bonds.

Dow Jones

The Dow Jones Industrial Average Index fell around 0.98% over the week, impacted by inflation and interest rates concerns. However, on Friday, it soared 1.5% higher, making it the best day so far this year.

S&P 500

The S&P declined by approximately 0.51% over the week, although Friday saw a rise of 0.8%. This was mostly due to the release of key inflation data that largely met expectations. 

NASDAQ

The Nasdaq ended its five-week winning streak with a 1.1% drop. Despite Friday’s midday dip of 1.7%, the index closed flat.

European Markets

European stocks ended the week slightly down. The STOXX Europe 600 Index fell 0.46% in local currencies as higher-than-anticipated inflation raised concerns about the European Central Bank delaying interest rate cuts past June. This uncertainty also impacted major European markets.

FTSE 100

The UK’s FTSE 100 Index lost 0.51% despite a positive Friday. The index closed the week at 8,275.38, even though it gained 0.54% on the last trading day.

CAC 40

France’s CAC 40 Index dropped 1.26%. However, it closed the week slightly higher on Friday, edging up 0.18% to 7,992.87, suggesting a possible short-term recovery.

DAX

Germany’s DAX declined 1.05%. Disappointing retail sales data in May, which fell more than expected, further pressured the index. The DAX ended the week flat-to-negative at 18,483.07

Asian Markets

GIFT Nifty

India’s GIFT City index, the GIFT Nifty, bucked the trend of positive performance seen in broader Indian markets earlier in the week. It rose 0.24% on Friday to close at 22,742.50 and lost 1.25% over the entire week. This fall suggests that investors in GIFT City might be more cautious than the rest of the Indian market.

Nifty 50

Indian indices broke their five-day losing streak and traded positive on Friday. Led by the gains in several heavyweight stocks, Nifty ended 0.19% higher at 22,530.70

Nikkei 225

Japan’s Nikkei 225 Index ended the week slightly higher despite falling 0.4% overall. This positive shift was driven by a strong rally on Friday when the Nikkei surged 1.14% to close at 38,487.90.

Straits Times

Singapore’s Straits Times Index defied the downward trend in most Asian markets, gaining 0.6% for the week. This positive performance indicates investor confidence in the Singaporean market. The index continued its momentum on Friday, rising 0.4% to close at 3,365.59.

Hang Seng

According to FactSet, Hong Kong’s Hang Seng Index saw a steeper decline, losing 2.84% for the week. This suggests a broader market sell-off in Hong Kong. Despite Friday’s modest decrease of 0.83%, the Hang Seng closed at 18,079.61, indicating possible stabilization.

Taiwan Weighted

The Taiwan Capitalization Weighted Stock Index (Taiex) took a significant hit, dropping 3% for the week. This downward trend continued on Friday, with the index closing at 21,174.22, down 0.89%.

KOSPI

South Korea’s Kospi index struggled throughout the week, dipping 1.90%. Despite a minor 0.041% rise on Friday, the index couldn’t recover its weekly losses.

SET Composite

Thailand’s SET Composite index also faced selling pressure, ending the week down 1.38%. The negative sentiment continued on Friday, with the index slipping a further 0.44%.

Jakarta Composite

Indonesia’s Jakarta Composite experienced the steepest decline among Asian markets, dropping a significant 2.87% for the week. This weakness persisted on Friday, with the index closing down 0.91%.

Shanghai Composite

China’s mainland markets exhibited muted performance. The Shanghai Composite Index remained broadly flat for the week. In contrast, the blue-chip CSI 300 index slipped 0.6%, indicating a slight pullback for larger, more established companies. Both major indexes closed lower on Friday, with the CSI 300 declining 0.16%.

Wrapping up

Despite some positive closing performances on Friday, lingering concerns about inflation and interest rate hikes continue to cloud the market outlook. Investors will be closely monitoring upcoming economic data and central bank decisions in the coming weeks to gauge the direction of the markets.

 While some Asian markets, like Singapore’s Straits Times, defied the downward trend, others, like Indonesia’s Jakarta Composite, experienced significant declines. This highlights the ongoing regional disparities in investor sentiment. Overall, caution seems to be the prevailing mood as investors navigate this period of mixed signals.

*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

The global stock market had a mixed week, thanks to varied economic indications from the United States and Europe. Sticky inflation in the United States remains a source of anxiety for investors worldwide, but contrasting economic signs keep investors on edge regarding the near-term market direction.

Gold fell 3.5% this week, reducing overall gains to 12.95% in 2024. Crude oil prices fell by 2.79%.

A quick look at the global market performance last week

Index	Previous Day Change (%)	WoW Change (%)
US Markets
Dow Jones	0.01	-2.33
S&P 500	0.70	0.03
Nasdaq	1.10	1.41
European Markets
FTSE 100	-0.26	-1.22
CAC 40	-0.09	-0.89
DAX	0.01	-0.06
Asian Markets
Nifty 50	0.04	2.59
Nikkei 225	-1.18	-0.36
Straits Times	-0.18	0.09
Hang Seng	-1.40	-4.83
Taiwan Weighted	-0.20	1.44
KOSPI	-1.27	-1.36
SET Composite	-0.25	-1.32
Jakarta Composite	0.50	0.59
Shanghai Composite	-0.89	-2.07

US Markets

All three major indices- Dow Jones, S&P 500, and Nasdaq reported a wildly varied performance over the week. Currently, the US economic indicators are somewhat mixed. Despite inflation remaining beyond a comfortable level, overall demand for durable goods, services, and manufacturing statistics outperformed expectations. Additionally, weekly jobless claims appeared to be stable. With robust economic data and rising inflation, investors’ hope for a rate cut by the Federal Reserve in the coming months are declining. 

Dow Jones

The Dow Jones Industrial Average Index recorded its biggest weekly loss since early April despite the prevailing bullish sentiment in the market. On Friday, the index traded primarily flat, but over the week, the index was down by 2.33%.

S&P 500

The broader S&P 500 index traded mostly flat during the week. In Friday’s session, the index was up by 0.7%, and on a week-on-week basis, it was down by 0.03%. 

Nasdaq

Nasdaq hit a new record during the week as it continued its march to uncharted territory amid rising demand for tech stocks. The index’s strength is due to strength in AI stocks, especially NVIDIA. In Friday’s session, the index was up by 1.1%, and on a week-on-week basis, it was up by 1.41%. 

European Markets

The European stock market showcased a mixed performance as questions emerged about the pace of rate cuts this year. Leaving aside the rate cut concerns, the overall economic activity in the region continues to pick up stronger than expected. The Eurozone composite purchasing manager index (PMI) for May came in at a 12-month high of 52.3, up from 51.7 in April. 

FTSE 100

UK inflation fell to 2.3%, the lowest level since July 2021. However, economists and analysts had pegged the inflation to be around 2.1%, thus dampening investors’ hope of lowering borrowing costs mid-year. On Friday, the index was down by 0.26%, and on a week-on-week basis, it was down by 1.22%. 

CAC 40

France’s dominant services sector industry suffered an unexpected contraction in May, reversing the previous month’s growth, thus impacting investors’ sentiment. On Friday, CAC 40 was down by 0.09%, and on a week-on-week basis, it was down by 0.89%. 

DAX

The German economy has overcome stagnation, achieving slight economic growth in the first quarter—up by 0.2% over the previous quarter. The DAX, the country’s primary stock exchange, was roughly flat this week, closing with a small loss of 0.06%. 

Asian Markets

Mixed signals from the United States and Europe impacted the Asian market’s momentum. Barring a few, most Asian indices traded weak and were also affected by domestic factors. Let’s have a close look at how different Asian indices performed. 

Nifty 50

Heightened volatility in the Indian stock market persisted during the week amidst the ongoing general election and corporate earnings, which have been largely positive. Nifty 50 ended flat on Friday’s session and was slightly up by 0.04%; however, on a week-on-week basis, the index was up by 2.59%.

Nikkei 225

Nikkei 225 finished lower during the week, falling by 0.36%, as the index tracked the US stock market. After reporting a contraction in GDP in the first quarter of 2024, Japan recorded growth in manufacturing in May, the first in more than a year, while the services sector PMI eased slightly during the period to 53.6 from 54.3 in the previous month. 

Straits Times

Following the global cues, Singapore’s primary stock market index, Strait Times, was roughly flat. On a week-on-week basis, it concluded the week with a slight gain of 0.09%.

Hang Seng

The Hang Seng index was the top loser among major indices, as the benchmark index declined by 4.83% at the end of the week. Weak corporate earnings and China’s failure to shore up the economy affected the stock market’s overall performance.

Taiwan Weighted

Although the Taiwan Weighted Index was slightly weak during Friday’s session, down by 0.2%, it concluded the week with a cumulative gain of 1.44%. 

KOSPI

Selling by FIIs, combined with inflation and credit concerns, sent the KOSPI index down this week. The index fell 1.27% on Friday and closed 1.36% down week over week.

SET Composite

A decline in financial services and transportation/logistics stocks slowed down the broader SET Composite index. On Friday, the index was down by 0.25%, and on a week-on-week basis, it was down by 1.32%. 

Jakarta Composite

The Indonesian market continues to witness positive momentum during the week. Its primary stock market index, Jakarta Composite, was up by 0.5% on Friday and 0.59% on a week-on-week basis. 

Shanghai Composite

Due to the property sector crisis, the Chinese market continues to experience selling pressure. Despite the government announcing a relief pack, there is no sign of relief. The Shanghai Composite index declined by 2.07% week-on-week. 

Wrapping Up

Looking ahead, the actions of the central banks of the US and Europe will continue to dominate the market. If the US fails to provide clear signs of rate cuts, the market may decline from here. But, on a positive note, the market momentum continues to be bullish, with a strong focus on technology stocks. 

*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

Investor sentiment continued to remain upbeat around the globe, boosted by strong earnings reports in the first quarter of 2024 and improving economic indicators. However, there are a few outliers.

Chinese economic data released indicate persistent problems in the economy as it fails to drive up retail consumption and also witnessed a slowdown in investments. On a broader note, the global market is looking more towards central bank commentary on rate cuts. Gold climbed 2.13% this week, bringing its overall gains to 16.83% in 2024. Silver is also witnessing strong gains and has risen by 60% in the last year. 

A quick look at the global market performance last week

Index	Previous Day Change (%)	WoW Change (%)
US Markets
Dow Jones	0.34	1.24
S&P 500	0.12	1.54
Nasdaq	-0.07	2.11
European Markets
FTSE 100	-0.22	-0.16
CAC 40	-0.26	-0.63
DAX	-0.18	-0.36
Asian Markets
Nifty 50	0.44	2.50
Nikkei 225	-0.34	1.46
Straits Times	0.26	0.69
Hang Seng	0.91	3.11
Taiwan Weighted	-0.22	2.65
KOSPI	-1.04	-0.11
SET Composite	0.36	0.79
Jakarta Composite	0.96	3.07
Shanghai Composite	1.00	-0.02

US Markets

The US market closed the week on a positive note after inflation cooled down more than expected in April, fueling bets of Fed rate cuts as early as September. Also, a rally in tech stocks on the back of strong earnings has kept the overall momentum positive. 

Dow Jones

This week, the 30-component stock index, the Dow Jones Industrial Average Index, has broken above the 40,000 market. It was the fastest 10,000-point climb for the index, which has more than doubled since its pandemic low. Robust Walmart earnings and favorable inflation data supported the index’s climb to record levels. On Friday, the index was up by 0.34%, and on a week-on-week basis, it was up by 1.24%. 

S&P 500

The S&P 500 index broke above the 5300 level for the first time due to strong investor sentiment and favorable economic conditions. In Friday’s session, the index traded on a flat note and was up by 0.12%. It closed the week with a cumulative gain of 1.54%. 

Nasdaq

Nasdaq pulled back slightly during Friday’s session because of profit booking in top tech stocks. However, the index managed to close the week on a positive with cumulative gains of 2.11%.

European Markets

The European market traded on a weak note as the latest ECB commentary suggests that there is no hurry to cut interest rates. This affected investor sentiment despite favorable inflation data. If the ECB’s rate cut plans in coming weeks significantly differ from earlier communications, we may see some correction in the market, which can affect its momentum. 

FTSE 100

FTSE 100 traded in a new record high level before giving up the gains due to mixed signals. In Friday’s session, the index was down by 0.22%, pulling down the index to red on a weekly note. The index was down by 0.16% on a week-on-week basis. 

CAC 40

CAC 40, the Paris-based index, was down by 0.26% after the close on Friday. On a weekly basis, the index was down by 0.63% due to a lack of triggers and mixed signals from the ECB.

DAX

Due to mixed global signals, the German primary stock index slowed its upward trend this week. The index fell 0.18% on Friday and ended the week with a slight loss of 0.36%.

Asian Markets

US inflation reduction and rising hopes for Fed rate cuts helped key Asian stock market indices maintain their upward trend. However, concerns surrounding the revival of the Chinese and Japanese economies continue to be a big headache for investors that could affect global growth. 

Nifty 50

The Indian market was largely positive during the week due to healthy earnings growth reported by corporates in the March quarter of FY24. The Nifty 50 was up by 0.44%, which helped the index report a cumulative weekly gain of 2.50%. 

Nikkei 225

The Japanese economy contracted by 0.7% in the first quarter of 2024 as consumer spending recorded its long downward streak since 2009. On Friday, Nikkei 225 was down by 0.34%; however, it managed to conclude the week on a positive note and was up by 1.46%. 

Straits Times

Following the global cues, Singapore’s primary stock market index, Strait Times, was up by 0.26%, and on a week-on-week basis, it concluded the week with a cumulative gain of 0.69%.

Hang Seng

The Hang Seng index continued to witness bullish momentum throughout the week due to attractive valuation in Chinese stocks. The index was best performing among global peers. In Friday’s session, the index was up by 0.91%, taking the total weekly gain to 3.11%. 

Taiwan Weighted

Although the Taiwan Weighted Index was weak during Friday’s session by 0.22%, the index was up by 2.65% on a weekly basis. The index was supported by non-tech sector stocks with large-cap financial stocks in focus. 

KOSPI

Hopes of a Fed rate cut failed to excite investors in the Korean market. KOSPI, Korea’s primary stock market index, was down by 1.04% in Friday’s session, wiping out the week’s gains and closing the week with a slight loss of 0.11%. 

SET Composite

Throughout the week, market mood remained mixed. The SET Composite, Thailand’s key stock market indicator, increased 0.36% on Friday and 0.79% week over week. 

Jakarta Composite

Strong upside momentum in the Indonesian stock market pushed the Jakarta Composite to post a record high level. The index was up by 0.96% on Friday and was up by 3.07% on a week-on-week basis. 

Shanghai Composite

Weak economic signals pushed lower China’s benchmark Shanghai Composite Index. On Friday, the index was up by 1%, but closed the week flat with a minor loss of 0.02%. 

Wrapping Up

Investors will continue to focus on central banks’ actions and their impacts on the market. They will also closely monitor economic indicators and corporate earnings to gauge the health of global economies. 

*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

As bullish sentiment prevailed, the US and European markets were strong during the week. The Asian market showcased a patchy performance during the week on account of profit booking. The strength in the market came from better-than-expected corporate earnings, the Fed’s dovish stance, the easing labor market, and positive momentum. 

Gold rose by 2.46% this week and 14.31% in 2024, showcasing an increasing appetite for gold among investors despite mixed economic sentiments. 

A quick look at the global market performance last week

Index	Previous Day Change (%)	WoW Change (%)
US Markets
Dow Jones	0.32	2.16
S&P 500	0.16	1.85
Nasdaq	-0.03	1.14
European Markets
FTSE 100	0.62	2.68
CAC 40	0.38	3.29
DAX	0.46	4.28
Asian Markets
Nifty 50	0.44	-2.32
Nikkei 225	0.41	-1.56
Straits Times	0.75	-0.07
Hang Seng	2.25	2.64
Taiwan Weighted	-0.72	1.86
KOSPI	0.57	1.91
SET Composite	0.19	0.14
Jakarta Composite	-0.49	-0.40
Shanghai Composite	0.01	0.44

US Markets

Investor sentiment remained upbeat due to increased optimism for an interest rate cut, which bodes well for the equity market. The decline in the consumer confidence index and the increase in year-ahead inflation expectations from 3.2% in April to 3.5% in May are the main reasons why investors are expecting a rate cut. 

Also, strength in tech stocks and better-than-expected corporate earnings contribute to the upbeat sentiment. 

Dow Jones

The 30-component stock index, the Dow Jones Industrial Average Index, extended its winning streak to eight consecutive days, the longest since December 2023. On Friday, the index rose by 0.32%, and on a week-on-week basis, the index was up by 2.16%. 

S&P 500

The S&P 500 index continues to see a lot of buyers’ interest during the week, showcasing the broader market trend. On Friday, Novavax witnessed a close to 100% jump in its share price following an announcement of a strategic deal with French pharmaceutical major Sanofi. On Friday, the index was up by 0.16%, concluding the week with a cumulative gain of 1.85%. 

Nasdaq

Mega-cap tech stocks like Apple, Alphabet, Amazon, and Tesla witnessed a bit of pullback due to profit booking after rallying the previous week. In Friday’s session, the tech-heavy index was down slightly by 0.03%, but on a week-on-week basis, it closed with gains of 1.14%. 

European Markets

The latest economic statistics show that the European economy is gradually improving, and optimism around the early rate cuts has pushed European markets to fresh highs this week. The European stock markets were the world’s best-performing market this week, and investors believe that European markets will have a brighter future from now on.

FTSE 100

The UK’s first quarter GDP estimate beat expectations, rising 0.6% as the country emerged from a recession. It was the fastest growth in the last three years. FTSE 100 climbed to fresh record highs. On Friday, the index was up by 0.62%, concluding the week with a cumulative gain of 2.68%. 

CAC 40

CAC 40, the Paris-based index, was higher by 0.30% after the close on Friday, led by gains in financials, industrials, and basic materials. On a weekly basis, the index was up by 3.29%, helping it to hit a new all-time high. 

DAX

Strong risk-on sentiment and optimism around the interest rate cuts sent the 30 stock index, DAX, to a new all-time high level. The index recorded strong gains in tech, retail, and insurance stocks. On Friday, DAX closed higher by 0.46%, and on a week-on-week basis, it was up by 4.26%. 

Asian Markets

Asian markets remained volatile this week due to domestic factors rather than global influences. The prospect of the Fed’s interest rate cuts could trigger a significant rally in Asian markets, attracting more foreign investments.

Nifty 50

The Nifty 50 was quite volatile this week due to the ongoing elections and the release of corporate earnings. On Friday, the index was up by 0.44%; however, on a weekly basis, it was down by 2.32%. 

Nikkei 225

Concerns over slower-than-expected economic growth in the first quarter and a potential transition to emerging-economy classification are putting negative pressure on stocks. On Friday, the Nikkei 225 index rose marginally by 0.41% but was down 1.56% week over week. 

Straits Times

Singapore’s primary stock market index, Strait Times, showcased mixed trading during the week, following its Asian peers.. On Friday, the index was up by 0.75% and concluded the week with a slight loss of 0.07%.

Hang Seng

The Hang Seng index was at its 10-month high this week as regulators considered a proposal to exempt individuals from paying taxes on dividends on Hong Kong stocks. In Friday’s session, the index was up by 2.25%, helping to close the week higher by 2.64%. 

Taiwan Weighted

Positive sentiment was seen throughout the week at Taiwan’s primary stock market index, Taiwan Weighted. On Friday, a rally in non-tech stocks pushed the index higher by just under a percent. On a week-on-week basis, the index closed higher by 1.86%. 

KOSPI

Global cues influenced Korea’s primary stock market index throughout this week. In Friday’s session, the index closed higher by 0.57%, and on a week-on-week basis, the index gained a total of 1.91%. 

SET Composite

Throughout the week, the market sentiment remained mixed, with the SET Composite, Thailand’s primary stock market index, trading flat. The index rose 0.19% on Friday and 0.14% week over week. 

Jakarta Composite

The Indonesian index, Jakarta Composite, dropped this week. The index fell 0.49% on Friday, wiping out all gains and ending the week with a 0.40% loss. 

Shanghai Composite

China’s benchmark Shanghai Composite Index closed nearly flat on Friday, with 0.01% gains. On a week-on-week basis, the index was down by 0.44%. 

Wrapping Up

Looking ahead, bullish sentiment is expected to sustain in the US and European markets, fueled by positive economic indicators and corporate earnings. However, profit booking may continue to affect the Asian markets, although the prospect of the Fed’s interest rate cuts could potentially drive a significant rally. Gold’s upward trajectory suggests increasing investor interest amidst economic uncertainty.

*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.