US stocks were not affected by the recent changes in European elections. The S&P 500 reached a new all-time high. Bitcoin initially surged above $70,000 but later returned to unchanged levels. Crude oil prices continued to rise, with WTI reaching $78 per barrel.
Despite early weakness in US stocks due to European election shifts, the market remained stable on Monday following a strong Payrolls report on Friday. Small Caps experienced significant fluctuations throughout the day, swinging from losses to gains by the end of the trading day. Major indices closed slightly higher, with the S&P 500 reaching a new all-time high.
Goldman’s trading desk reported a 13% increase in overall activity levels compared to the previous two weeks, with market volumes down by 11%. Large Orders (LOs) showed a consistent demand trend over the past six sessions, particularly in the Technology, Industrials, and Healthcare sectors. Hedge Funds (HFs) were slightly more inclined to sell, with a concentration of supply in the Technology sector.
JPM’s forecast of market pessimism contributed to the new all-time high in stock prices, despite underwhelming announcements from companies like AAPL at the WWDC. Treasury yields saw a modest increase following the spike after the Payrolls report, with the long-end outperforming the short-end.
The dollar saw marginal gains but retraced most of its overnight increase during the US trading session. Gold prices rebounded from Friday’s losses, while Bitcoin briefly surged above $70,000 before stabilizing. Crude oil prices continued to climb, reaching $78 per barrel.
While the market indices appeared calm on the surface, underlying indicators showed a different story. The gap between equal- and cap-weighted S&P indices is the widest since the financial crisis of 2008/2009. Despite external challenges, the market remains resilient and continues to show signs of strength.
Overall, the US market remains steady in the face of global economic shifts, with key indicators pointing towards continued growth and stability in various sectors. The performance of stocks, cryptocurrencies, and commodities like gold and oil reflects a complex landscape of market dynamics and investor sentiment. Investors will continue to monitor these developments closely to navigate the evolving economic landscape effectively.
