AI euphoria drives sentiments on Wall Street📈

• US100 gains more than 0.5%; higher-than-forecast inflation didn't spoil sentiment on indexes
• Large-cap contracts and AI demand drive Oracle (ORCL.US) shares after Q4 2023 results
• NYCB (NYCB.US) shares gain 6%; Fitch expects liquidity in the banking sector to remain an issue until the Fed starts easing policy
• Economists expect QT tapering mid-year; OPEC raises estimates for US GDP growth in 2024

The higher annual growth rate of US inflation did not scare investors; CPI rose 3.2% vs. 3.1% forecast and 3.1% previously. Core inflation also indicated higher growth, at 3.8% vs. 3.7% forecast and 3.9% previously. Prices for services excluding rents rose 3.9%, with lower prices for used cars adding to the slightly lower reading; the reading was definitely not upbeat and indicates another month in a row of negative surprise inflation readings. 

Nonetheless, Wall Street did not perceive the data as particularly risky, paying attention instead to Oracle and the prospect of a soft landing, against which periodic 'upside surprises' with price pressures seem inevitable. OPEC analysts raised their estimate of U.S. growth in 2024 to 1.9% from 1.6% previously. Economic surveys suggest that analysts are pricing June as the month of QT program tapering, and most analysts expect that this time the 'predictive' value of yield curve inversion will not apply, and there will be no recession in the US. 

Oracle's surge drives shares of artificial intelligence-related companies. More than 4% growth is recorded by Nvidia, which returns above $900 per share. Source: xStation5

US100 chart (H1)

After 1:1 correction on Nasdaq100 futures (US100), bulls again control sentiments, as AI companies gain after better than expected Oracle Q4 2023 report and company remarks. The downward move was stopped at 23,6 Fibonacci retracement of the upward wave from the January. Next, critical resistance zone is 18,300, but it's unsure will this level be tested before the crucial rollover, this week.

Source: xStation5

News from companies

• Archer-Daniels-Midland (ADM.US) gains more than 5% as the agribusiness and nutrition giant reported fourth-quarter results and, on a smaller-than-expected scale, revised its inter-segment sales results for the past three years following an internal investigation.
• Boeing (BA.US) extends declines as Chilean authorities launched an investigation into the crash of a Latam plane flying from Sydney to Auckland, which hospitalized 10 people
• Carvana (CVNA.US) is gaining after Jefferies analysts upgraded its rating to "hold," noting improved profitability. In March, the company reported that gross profit per car sale rose to more than $5,500 from $3,022 in 2022;
• OnHolding (ONON) loses nearly 15% after releasing first-quarter and full-year net sales forecasts that missed analysts' expectations
• Advance Auto Parts (AAP.US) gains 3% after the company entered into a new collaboration agreement with Third Point and Saddle Point Management networks.
• Southwest Airlines (LUV.US) loses nearly 10% as the company plans to cut flights for the year, halt most recruitment and reschedule as a result of problems with Boeing aircraft
• Acadia Pharmaceuticals (ACAD.US) is losing more than 20% after the company reported that a Phase 3 study in schizophrenia failed to reach its endpoint.
• 3M (3M.US) gains after appointing aerospace industry veteran William Brown as CEO, following a tumultuous streak by Mike Roman, during whose tenure the company performed below investor expectations.

Oracle gains on AI wave

Shares of Larry Page's Oracle (ORCL.US) are gaining 12% after the software company reported a surprisingly strong increase in large customer bookings for its cloud computing business unit. Wall Street now expects that the company will eventually be able to increase market share, with more AI-driven demand for its services adding to the positive sentiment. The company beat expectations on revenue and earnings per share, and its shares are reaching historic highs today after a temporary correction. Along with Oracle, the semiconductor sector and BigTech stocks are gaining.

Oracle shares (ORCL.US), D1 interval

Source: xStation5