Global Economic Pause Market Bull Run: Nasdaq, S&P 500 Slip - TraderFactor (2024)

Global Economic Pause Market Bull Run: Nasdaq, S&P 500 Slip - TraderFactor (1)

Global Economic Pause Market Bull Run: Nasdaq, S&P 500 Slip

  • Zahari Rangelov
  • June 8, 2023

Global Economic Pause Market Bull Run: Nasdaq, S&P 500 Slip - TraderFactor (2)

Global Economic Pause Market Bull Run: Nasdaq, S&P 500 Slip - TraderFactor (3)

Dow Jones climbs but Nasdaq and S&P 500 decline – here’s what happened in the markets.

Global concerns over economic growth led to mixed results for US stocks on Wednesday. Despite unexpected events such as a Canadian interest rate hike, a drop in Chinese exports, and warnings from OECD, the Dow Jones Industrial Average gained slightly while the S&P 500 and Nasdaq suffered losses.

Stock markets experience mixed results as the energy sector rises by over 2.6%. While the S&P 500 and Nasdaq Composite declined, the Dow Jones Industrial Average added 0.27%.

The SPDR S&P Oil & Gas Exploration & Production ETF and First Trust Natural Gas ETF were top performers, each gaining over 3%.

Tech giants Alphabet Inc. (GOOG) and Microsoft Corporation (MSFT) caused a dip in the Nasdaq 100 (^NDX) by falling about 3% each, after their recent contribution to the S&P 500’s nearly bull market before slipping on Wednesday.

Regional banks continue to soar as the KRE ETF rises over 3%. PacWest Bancorp enjoys a 14.4% climb and Zions Bancorporation sees a 4.5% increase.

Meanwhile, the S&P 500 has gained over 7% in the last three months, thanks to the rise of artificial intelligence.

Best Tech Stocks On Market To Watch

Best Tech Stocks On Market To Watch

Global Market Conditions

The Bank of Canada raised its interest rate by 25 bps. Meanwhile, China’s post-pandemic recovery is causing concern as its exports slumped 7.5% in May, leading to a potential need for new stimulus measures.

The OECD has slightly lifted its global growth forecast for 2023, but inflation and interest-rate hikes may still drag on the economy. Treasury yields rose due to the US Treasury’s plan to boost the size of its bill sales, putting pressure on short-dated bonds. Meanwhile, mortgage rates are weakening demand in the housing market.

Investors are also monitoring the Securities and Exchange Commission’s crackdown on cryptocurrency exchanges, with Bitcoin’s price trading below $27,000.

Tesla’s stock rose more than 1% as the Environmental Protection Agency excluded EV makers from the Renewable Fuels Standard.

Global Economic Pause Market Bull Run: Nasdaq, S&P 500 Slip - TraderFactor (4)

United Natural Foods Inc. and Campbell Soup both missed their earnings targets, leading to substantial drops in their stock prices.

UNFI’s Q3 profits fell below expectations and the company had to cut its full-year outlook. Meanwhile, CPB’s earnings guidance also fell short of Wall Street predictions.

On a brighter note, Netflix’s shares are on the rise thanks to predictions from JPMorgan analysts. Their estimate suggests that the company’s recent password crackdown will bring in an extra $6 billion in revenue between 2024-2025.

In other news, Affirm Holdings announced a partnership with Amazon Pay, causing their stock to climb over 3%.

GameStop is set to report earnings after hours on Wednesday, and their shares have already risen over 5%.

Stay tuned for updates.

Investors anticipate the Federal Reserve to hit the brakes next week by leaving the fed-funds rate untouched. The central bank’s decision comes after a remarkable stretch of aggressive rate hikes that raised the interest rate from near zero to 5.25% since March 2022.

Global Economic Pause Market Bull Run: Nasdaq, S&P 500 Slip - TraderFactor (5)

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All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partner’s prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.

  • Global Economic Pause Market Bull Run: Nasdaq, S&P 500 Slip - TraderFactor (6)

    Zahari Rangelov

    Zahari Rangelov is an experienced professional Forex trader and trading mentor with knowledge in technical and fundamental analysis, medium-term trading strategies, risk management and diversification. He has been involved in the foreign exchange markets since 2005, when he opened his first live account in 2007.Currently, Zahari is the Head of Sales & Business Development at TraderFactor's London branch. He provides lectures during webinars and seminars for traders on topics such as;Psychology of market participants’ moods,Investments & speculation with different financial instruments andAutomated Expert Advisors & signal providers.Zahari’s success lies in his application of research-backed techniques and practices that have helped him become a successful forex trader, a mentor to many traders, and a respected authority figure within the trading community.

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FAQs

What is it called when you cheat the stock market? ›

Market manipulation is a deliberate attempt to interfere with the free and fair operation of a market, typically for personal gain. It can take many forms, such as spreading false or misleading information, manipulating prices or trading volumes, or using unfair or fraudulent tactics to manipulate market conditions.

At what age should you get out of the stock market? ›

There are no set ages to get into or to get out of the stock market. While older clients may want to reduce their investing risk as they age, this doesn't necessarily mean they should be totally out of the stock market.

Should I pull my money out of the stock market? ›

It can be nerve-wracking to watch your portfolio consistently drop during bear market periods. After all, nobody likes losing money; that goes against the whole purpose of investing. However, pulling your money out of the stock market during down periods can often do more harm than good in the long term.

What is the bull market trick? ›

In a bull market, it's best to invest as early as possible. The earlier you invest in the market, the more of the market's rise you will enjoy. If you wait to buy at the market's peak, there's no place to go but down.

What is a traders cheat sheet? ›

The Trader's Cheat Sheet is a list of 50 commonly used technical indicators with the price projection for the next trading day that will cause each of the signals to be triggered.

What is cheat sheet in trading? ›

Chart pattern cheat sheets can be a useful tool for investors or traders who are interested in trading. They offer a convenient reference guide to the most common chart patterns in financial markets. One can use patterns to analyze potential trends, reversals, and trading opportunities.

What happens to 401k if the stock market crashes? ›

Your investment is put into various asset options, including stocks. The value of those stocks is directly tied to the stock market's performance. This means that when the stock market is up, so is your investment, and vice versa. The odds are the value of your retirement savings may decline if the market crashes.

Who keeps the money you lose in the stock market? ›

No one, including the company that issued the stock, pockets the money from your declining stock price. The money reflected by changes in stock prices isn't tallied and given to some investor. The changes in price are simply an independent by-product of supply and demand and corresponding investor transactions.

Should I keep my money in the bank or stock market? ›

If your goal requires quick access to cash, you'll likely opt to hold money in a savings account or similarly liquid space. On the other hand, if you're hoping for better returns on your money than can be achieved with savings account interest rates and over a long time, then investing may be the answer.

Are we in a bull market in 2024? ›

With stock indexes at all-time highs, it seems we are in the midst of a new bull market. While much of the market's recent gains have come from a handful of stocks, the rally has begun to broaden in recent months. Expectations of an earnings rebound in 2024 suggest earnings could continue to drive the market higher.

How do you make money in a bull market? ›

Investors who want to benefit from a bull market should buy early in order to take advantage of rising prices and sell them when they've reached their peak. Although it is hard to determine when the bottom and peak will take place, most losses will be minimal and are usually temporary.

Are we in a bull run? ›

The current bull market started in October 2022, when the S&P 500 reached its most recent low. Since then, the index has swelled about 35 percent.

What is Takashi Kotegawa's strategy? ›

Takashi Kotegawa's most legendary deal

Kotegawa capitalized on a mispricing opportunity, executing a series of buys and sells that netted him an extraordinary profit in a matter of days. Kotegawa's series of calculated trades ultimately resulted in a profit of over $1 million in a single day.

What crime is stock manipulation? ›

Often falling under the term “securities fraud,” market manipulation refers to the artificially raising or lowering the price of stock on any security. Market manipulation generally involves a series of stock transactions that artificially inflate or reduce the price of a stock or security.

What is lying to investors called? ›

A Ponzi scheme is a type of investment fraud in which investors are promised big profits at little or no risk. The money is not invested.

Is stock manipulation a federal crime? ›

18 U.S.C. § 1348 securities fraud is the unlawful practice of using manipulative or deceptive tactics to purchase or sell a security. Fraud is a commonly prosecuted federal crime in the United States and securities fraud charges have made news headlines in the prosecution of Bernie Madoff.

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