U.S. stocks set for best week since March - BNN Bloomberg

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Global stocks were headed for the best week in more than two months, buoyed by bets on Chinese stimulus and exuberance surrounding artificial intelligence firms.

The S&P 500 was up for a seventh straight day, its longest winning run since November 2021. The Dow Jones Industrial Average extended its surge from a September low to about 20 per cent. Chipmakers lost some ground after Micron Technology Inc. said it believes that about half of China HQ customer revenue is now at risk of being impacted. Adobe Inc. soared after raising its sales forecast on optimism that generative AI features will spur demand.

“The market caught a renewed bid from traders suffering from FOMO and ‘chasing’ the market higher,” said Tom Essaye, a former Merrill Lynch trader who founded The Sevens Report newsletter. “We are not bearish stocks right now, but we are growing cautious on the very near-term direction of the market given how quickly the market priced in a very Goldilocks macroeconomic environment based on only limited evidence of improvement in the current major market influences.

Equities had about US$22 billion inflows in the week through June 14, while bonds had $6.7 billion of additions, Bank of America Corp. said in a note, citing EPFR Global data.Traders will get another relevant economic reading Friday: the University of Michigan consumer sentiment index. “We expect sentiment to remain low amid concerns that any recession to come may cause lasting pain,” said Anna Wong at Bloomberg Economics.

 

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