Beat the street: S&P record; pending central bank decisions and Tesla expectations
Shares in the US rose to record highs on Friday, buoyed by tech stocks and economic hope. IGTV’s Angela Barnes speaks to Tasty Live’s Christopher Vecchio about the ‘soft landing’ outlook expectation for the US economy.
(Partial Video Transcript)
Will US shares keep on rising?
AB: Hello, I'm Angela Barnes and welcome to beat the street, the show that gives you all the tradeable news and data ahead of the Wall Street Open.
Coming up on the show, shares in the US rose to record highs on Friday, fueled by tech stocks and rising hopes about the economy. But will it continue this week?
Meanwhile, global leaders in business and politics have wrapped up the World Economic Forum in Davos, Switzerland, where we'll be discussing with Chris Vecchio from Tasty Live the soft landing of the US economy that many delegates there were forecasting.
Central banks trio to announce monetary policy
And three major central banks are due to decide on their monetary policy this week. First, on Tuesday, the Bank of Japan, followed by the Bank of Canada on Wednesday and the European Central Bank on Thursday.
We are one hour away from the start of the US session, and this is how equity markets are looking.
Well, first of all, let's have a look at the S&P, US 500 and it's set for a higher open up 0.37%. Meanwhile, Wall Street set for a higher open. Dow Jones up 0.26%. And the tech heavy NASDAQ is well set for a higher open, up 0.62%. Well, investors will no doubt be looking to build on the S&P 500 fresh all time high on Friday.
Record close for S&P 500
Well, let's go to senior market analyst Axel Rudolf, who has more on the S&P 500 record close.
AR: Yes, Angela, the S&P 500 is really on everybody's lips because basically it hit a new all-time record high as we've mentioned last week. And in doing so, it rose not just above the previous high. We saw at the beginning of this month around 4,800, but also above the January 2022 high that was made around 4,817, I believe.
And you can see here on the daily chart, we really rallied very strongly to the upside. At the moment, we're even seeing in overnight trading a gap forming here as the S&P 500 is probably heading towards the psychological 5000 mark. And you can see here, if I zoom out onto a weekly chart, the advance we've seen take us above the highs seen back in January of 2022.
Further upside on the horizon
And, basically, as long as we stay above the current January low at 4,664 or so, further upside is most likely in store for the S&P 500.
AO: Well, thanks very much, Axel. Now, the World Economic Forum in Davos, Switzerland, has come to an end and many of those in attendance last week talked about how the US economy is heading for a soft landing.
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