The S&P 500 closed yesterday at a record high of 7,209, marking its best monthly performance since late 2020. However, futures are showing a slight pause as investors digest a flood of earnings and a pivotal Fed meeting. Alphabet shares surged 10% yesterday to record highs on massive cloud revenue growth. This helped the tech sector and the S&P rally to new highs. Qualcomm Surged 15% despite cautious guidance, showing strong underlying momentum in the chip sector. As expected the tech companies are doing well and the S&P rally continues.
The FTSE 100 is lagging behind as it is more representative of the state of the global economy. The impact of the war in Iran is slower growth, higher inflation and GDP in the US is slowing. Latest US GDP was 2% (2.2% expected). As I said the decline in the US will resume after the earnings season, sometimes the decline resumes in the midst of the earnings season when the majority of the big tech companies have reported earnings. Investors will focus on inflation and yields.