Macro

Stocks Rally, GE Soars 6.5%, WTI at $86 Amid Market Optimism

Market rebounds as Powell hints at potential rate cuts, with commodities rising and GE Aerospace rallying amidst economic optimism.

By Bill Bullington

4/3, 13:38 EDT
S&P 500
iShares 20+ Year Treasury Bond ETF
iShares 7-10 Year Treasury Bond ETF
General Electric Company
Intel Corporation
Spotify Technology S.A.
Ulta Beauty, Inc.
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Key Takeaway

  • Wall Street rebounds as ISM Services PMI indicates slower growth, easing overheating concerns; S&P 500 ETF sees gains.
  • WTI crude hits $86/barrel amid a commodities rally; GE Aerospace surges 6.5% post-separation, while Intel drops over 7% due to losses.
  • Spotify shares up 6% on subscription price hike news; Ulta Beauty falls 14.5%, affecting sector peers negatively.

Market Rebounds on Economic Indicators

Wall Street saw a positive shift with the S&P 500 index climbing, breaking a two-session losing streak. This uptick was largely attributed to the ISM Services PMI for March, which came in at 51.4, below the anticipated 52.7 and indicating the slowest growth in three months. This data point eased concerns about the U.S. economy potentially overheating, which could have discouraged the Federal Reserve from considering rate cuts. Additionally, the ADP National Employment Report showed a surge in private payrolls, adding 184,000 new jobs last month, significantly above the forecasted 140,000, suggesting robust employment growth.

Fed Chair Powell's Keynote Insights

In a keynote address at Stanford University, Fed Chair Jerome Powell emphasized that the central bank's decision-making is being conducted on a meeting-by-meeting basis. Powell hinted that if the economy progresses as anticipated, many Federal Open Market Committee members believe it's likely they will start lowering interest rates sometime this year. This statement provided a glimpse into the Fed's outlook on the economy and its future policy directions, influencing investor sentiment.

Commodities and Sector Movements

The commodities market continued its upward trajectory, with West Texas Intermediate (WTI) crude prices reaching $86 a barrel, marking their highest level since late October 2023. Gold and silver also saw significant gains, with gold rising 0.5% to $2,290/oz and silver rallying 2.6% to $26.80. In the stock market, notable movements included GE Aerospace's stock jumping 6.5% following its separation from GE Vernova, while Intel Corp's shares fell over 7% due to a substantial operating loss in its chip foundry business. Other significant stock movements were observed in companies like Spotify Technology, Ulta Beauty Inc., and Blue Owl Capital, each reacting to various corporate developments and market conditions.

Street Views

  • Sheila Kahyaoglu, Jefferies (Bullish on GE Aerospace):

    "Rated GE Aero stock as a Buy with an initial price target set at $155 per share."