• Wall Street posted gains on September 26, with the DJIA, S&P 500, and Nasdaq closed up by +0.62%, +0.40%, +0.60%, respectively.
• The stock market rallied Thursday, with the S&P 500 hitting a record high and the Nasdaq reaching a 2-1/4 month high, led by chip stocks. Micron Technology surged +14% on strong sales and profit guidance. Indexes later pulled back as rising T-note yields, driven by strong Q2 GDP and jobless claims data, hinted at a more hawkish Fed.
• The 10-yr UST yield remained steady at 3.79%, while the 2-yr yield climbed by +7.0 bps to 3.60%. The 10-yr and 2-yr yield spread widened by 19 bps post-Fed meeting, with the “bear steepener” reflecting market anticipation of higher inflation.
• The US economy expanded as anticipated in Q2 2024, with the final GDP growth rate rising at an annualized +3.0%, up from +1.4% in the previous quarter.
• Unemployment claims in the US decreased by -4,000 to 218,000 in the week ending September 21st, surpassing forecasts of 225,000 and reaching a 4-month low.
• Eurozone M3 money supply grew to +2.9% YoY in August 2024, up from +2.3% YoY in July, with a three-month average of 2.5%, the highest rise in 19 months. .
• In Asia, Tokyo's CPI in Japan fell to 2.20% in September 2024, down from 2.60% in August. The core consumer price index increased by 2.00% YoY.
• Global bond yields moved higher on Thursday, with the 10-yr German bund yield up by +0.8 bps to 2.18%, the 10-yr UK gilt yield rose by +2.0 bps to 4.01%, while the 10-yr Japanese JGB closed up +1.7 bps to 0.83%.
