French Government Shenanigans and Powell Remarks – US Market Wrap

Stocks hit all-time highs as Federal Reserve Chair Jerome Powell said the economy is in remarkably good shape. The Euro wavered as the French government fell after a no-confidence vote in Parliament.

A rally in big tech drove the S&P 500 to its 56th closing record in 2024. The Nasdaq 100 climbed more than 1%. NVIDIA led megacaps higher, with the group’s surge this year approaching 65%. Salesforce soared as their results boosted hopes companies will keep benefiting from an industry-wide boom in artificial intelligence.

Powell also said officials can afford to be cautious as they lower rates toward a neutral level – one that neither stimulates nor holds back the economy. He spoke at the New York Times DealBook Summit in New York.

The S&P 500 rose 0.6%. The Nasdaq 100 climbed 1.2%. The Dow Jones Industrial Average added 0.7%.

Treasury 10-year yields declined four basis points to 4.18%. French bond futures held onto earlier gains after far-right leader Marine Le Pen joined a left-wing coalition to topple the government, setting the stage for further political wrangling that has weighed on the nation’s assets for months.