A shift in Sentiment after the FED meeting and economic data?

Update, May 5th 2024

My weekly take on the markets and portfolios.

The Nasdaq closed the week in positive territory and is back above its 10-week moving average (or 50 days SMA).

A few interesting things under the surface:

• “dovish” comments post FED meeting

• data from the job market is slightly deteriorating which is seen as deflationary

• right now inflation nowcast for May is pointing slightly down

• the price of oil fell almost 6% over the last week

All of the above is reflected by the 10-year treasury yield that moved down by more than 3% last week.

If you ask me, this is a favorable setup for stocks.

We are walking on a thin line where small changes in data can move the direction of the markets.

If the 10-year treasury yield starts trending down again, I expect a “UP” period. That is my base case. Let’s see how it develops.

To be noted: almost 80% of companies that already reporte…