U.S. Equity Markets finished yesterday’s volatile trading session mixed as the Dow closed 0.26% lower while the NASDAQ 100 ended the day with a gain of 1.3%. Federal Reserve Bank of New York President John Williams said the central bank needs to raise interest rates to curtail demand and improve the supply side of the equation. He added that as inventories replenish, they will help make goods more readily available – while also fuelling a fall in prices and inflation growth. But these changes will come at a cost. The rate-setting Federal Open Market Committee vice-chair said higher rates will reduce labour demand, as household and business borrowing costs will rise. As a result, economic activity may slow, fuelling a potential rise in unemployment. So, the Fed is trying to ease growth expectations with small growth forecasts than what was previously provided. All of this will likely materialise in the form of a lower price-to-earnings multiple for the S&P 500, which is just one part of the broader expectation for a reset in the market. But what policymakers do want Wall Street and Main Street to understand is that they must raise rates to bring supply and demand back into balance. Borrowing costs are headed higher, meaning home, car, and credit card loans won’t be as affordable as they once were. And in the process, economic activity will have to slow but does not have to suffer. The change implies growth expectations may need a reset. That could weigh on the S&P 500 Index going forward. Within the S&P 500, 7 of the 11 sectors finished lower. European Markets closed higher. French President Emmanuel Macron visited German Chancellor Olaf Scholz on his first foreign trip since re-election in a gesture of European solidarity. Italian Industrial Production figures for March surprisingly did not contract as consumer goods output surged. The Centre for European Economic Research’s Germany Economic Sentiment Survey for May showed investor pessimism is waning as respondents were more optimistic about the outlook. In Asia, The People’s Bank of China reiterated its commitment to bolstering economic activity by ensuring support for the small businesses and sectors most hurt by COVID-19 lockdowns. Chinese state-run media outlet Securities Daily suggested the recent Yuan weakness is likely to end as the nation’s economy recovers from COVID-19 lockdowns. Bank of Japan Executive Director Shinichi Uchida said tightening monetary policy would hurt the economy as it is still trying to rebound through continued support. Bank of Korea rate-hike speculation rose for the policy meeting later this month as inflation continues to increase and the Won weakens. Elsewhere, Oil fell 3.25% after a key German energy buyer conceded to Russia’s demand to pay in Rubles, While Gold closed a further 0.81% lower.

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For anyone following my Platinum Service it made 760 points yesterday and is now ahead by 895 points for May having made 762 points in April, following a gain of 5883 points in March. The Platinum Service made an impressive 5324 points in February, after ending January with a gain of 3878 points, more than making up for December’s 932 points loss, having made 2466 points in November, 1028 points in October, 2866 points in September, 1543 points in August, and 996 points in July. The Platinum Service made 1366 points in June, 1439 points in May, 1244 points in April, after ending March with an impressive gain of 3769 points. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 1600 points I have a YouTube Channel which contains recent interviews I have given This can be viewed by clicking HERE Please subscribe to this for new interview notification 

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