Daily Note | May 23, 2024 | Nvidia Drives AI Which Drives The Market

Please note:

Memorial Day Holiday: US bond markets will close early at 2:00 p.m. ET on Friday, May 24 and will be closed all day on Monday, May 27 in observance of Memorial Day.

Important change to trade settlement: Starting Tuesday, May 28, all fixed income secondary market trades will settle the business day after the trade date (T+1).

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Higher yields = lower markets. The Dow is down 225 points thanks to the 10-yr yield pumping 5 bps to 4.47%. The reason for the higher yields is higher than expected Global Flash PMIs, which came in at 50.9 vs 50.0. Slightly stronger global growth will result in markets fearing higher-for-longer from the Fed.

The Nasdaq is bucking that trend thanks to strong results from Nvidia. Shares are up 8% over $1,000 per share. The company also announced a 10-for-1 stock split. This should help continue to push the AI trend which should help drive the markets.