As March concludes, investors are content holding onto substantial first-quarter stock gains, with a quiet market environment characterized by a stable dollar, calm interest rate markets, and low volatility leading into the Easter holiday.
The day presented a blend of outcomes, with Boeing (BA, Financial) seeing over a 1% increase after announcing significant management changes and the planned 2024 departure of CEO Dave Calhoun. Meanwhile, leaders in artificial intelligence, Nvidia (NVDA, Financial) and Micron Technology (MU, Financial), experienced gains. However, Intel (INTC, Financial) and AMD (AMD, Financial) faced setbacks following reports of China's plans to eliminate U.S. microprocessors in government PCs and servers.
A successful two-year Treasury auction helped maintain bond yields, while diverse opinions from Federal Reserve officials did little to alter market expectations. Additionally, an unexpected drop in new U.S. single-family home sales was observed in February, attributed to rising mortgage rates, though the market remains buoyed by a shortage of available pre-owned homes.
With stock markets closed on Good Friday, the release of the February PCE inflation gauge will be missed, shifting focus to a consumer confidence report. In other news, bitcoin (BTC, Financial) surpassed $70,000 for the first time since mid-March, maintaining its ascent into the early hours of Tuesday.
Grayscale Bitcoin Trust experienced $1.9 billion in outflows, marking a week of net outflows for U.S. spot bitcoin ETFs as of March 22, per BitMEX Research. Overseas, Chinese stocks and the offshore yuan saw a rebound, and a significant meeting between China's President Xi Jinping and American business leaders is scheduled for Wednesday.
In global markets, Japanese and European stocks, along with crude oil prices, remained steady. U.S. stock futures indicated a slight increase, maintaining the first quarter's impressive gains in the S&P 500 and Nasdaq.
The dollar retreated from recent highs, with the USD/JPY pair showing slight movement amid speculation of Bank of Japan intervention. Political developments include a trial date set for Donald Trump's criminal case, potentially impacting his political future.
In a tragic event, Baltimore's Francis Scott Key Bridge collapsed early Tuesday after a ship collision, prompting search and rescue operations for survivors.
Looking ahead, Tuesday's U.S. market direction could be influenced by various key data releases and events, including consumer confidence, durable goods orders, and several Federal Reserve surveys. Additionally, ECB chief economist Philip Lane is set to speak, and corporate earnings reports, including McCormick, are anticipated.
