Stocks Rebound As US Economy Flexes Muscles, Small Caps Rally, Gold Falls: What's Driving Markets Thursday?
Portfolio Pulse from Piero Cingari
Wall Street rebounded strongly on Thursday, driven by better-than-expected economic growth and cooling inflation. Major indices and sectors posted gains, with small caps and long-term Treasury bonds performing particularly well. Gold and Bitcoin fell, while oil prices rose.
July 25, 2024 | 5:00 pm
News sentiment analysis
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POSITIVE IMPACT
The SPDR Dow Jones Industrial Average (DIA) rose 1.1%, benefiting from strong economic growth and positive market sentiment.
Positive economic data and market sentiment drove gains in the Dow Jones, reflected in the performance of DIA.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
The iShares Russell 2000 ETF (IWM) rallied 2.4% as small caps outperformed, driven by strong economic growth and cooling inflation.
Small caps tend to benefit from strong economic growth and reduced inflationary pressures, leading to a significant rally in IWM.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
The Invesco QQQ Trust (QQQ) rose 0.5%, with tech stocks benefiting from the positive economic outlook.
Tech stocks, represented by QQQ, saw gains due to the positive economic outlook, although the rise was more modest compared to other sectors.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
The SPDR S&P 500 ETF Trust (SPY) was up 0.7%, reflecting broad market gains driven by strong economic growth and cooling inflation.
Broad market gains, driven by positive economic data, led to an increase in SPY, reflecting the overall market sentiment.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
The iShares 20+ Year Treasury Bond ETF (TLT) rose 1.8% as Treasury yields fell, benefiting from the positive economic data.
Falling Treasury yields, driven by strong economic data, boosted the performance of long-term Treasury bonds, positively impacting TLT.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The Industrials Select Sector SPDR Fund (XLI) outperformed, up 1.9%, driven by strong economic growth.
Industrials benefited significantly from the strong economic growth, leading to outperformance in XLI.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 60
NEUTRAL IMPACT
The Communication Services Select Sector SPDR Fund (XLC) lagged, up only 0.6%, despite the positive market sentiment.
Despite the overall positive market sentiment, the communication services sector saw limited gains, reflected in XLC's performance.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50
NEUTRAL IMPACT
The Utilities Select Sector SPDR Fund (XLU) lagged, up only 0.6%, as investors favored riskier assets.
Investors' preference for riskier assets limited the gains in the utilities sector, resulting in modest performance for XLU.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50