Overnight on Wall Street: Thursday 15 April 2021

Equity markets

US Equity markets were mixed last night with a strong performance from the financial sector pushing the Dow to intra day all time highs whilst a tech sell off dragged down the NASDAQ and S&P.

•         Dow Jones up 53 (0.16%)
•         NASDAQ down 138 (0.99%)
•         S&P 500 down 16.93 (0.41%)
•         Russell 2000 up 19 (0.84%)

JPMorgan and Goldman Sachs reported strong revenue figures pushing the Dow into positive territory and paring some of the losses in the S&P.

Investors will be watching tonight’s figures from financial titans Bank of America and Citigroup to see if this trend continues.

After Tuesday’s CPI print that showed consumer prices may be rising at an inflationary pace, NASDAQ listed tech stocks sold off as investors resumed rotating from growth to old economy value stocks.

Economic announcements

Traders will be looking ahead to a key print on the strength of the U.S. consumer tonight, with March retail sales report due for release. The consensus is 5.8% jump in monthly retail sales, due to stimulus and easing of COVID restrictions.

Australian Employment Change and the unemployment rate for March will be released at 11:30 AEST, after last month’s blockbuster beat in job numbers, analysts have forecast 35.2K new jobs added and a reduction in the unemployment rate to 5.7%.

FX markets 

US Dollar

The US Dollar index continued its downtrend with all major currencies rallying against the greenback overnight.

Comments from Fed Chairman Powell overnight that “Most Fed officials didn’t see raising rates until 2024” and 10 year bond yields dropping has created a strong headwind for any near future US dollar strength.

Source: Twitter