New York Stock Market Rebounds on Buyback Demand... Trump SNS Up 38%

Rise Due to Inflow of Bargain Buying
Focus on February Core PCE Inflation Released on the 29th

The three major indices of the U.S. New York stock market are rising in early trading on the 26th (local time). Buying momentum is gradually flowing into the market, which had been taking a breather due to concerns over high levels and had undergone a correction.

As of 10:54 a.m. at the New York Stock Exchange (NYSE) on this day, the Dow Jones Industrial Average was up 0.23% from the previous close, standing at 39,404.28. The S&P 500, which focuses on large-cap stocks, rose 0.26% to 5,231.68, and the tech-heavy Nasdaq index was trading up 0.29% at 16,431.72.

By individual stocks, the shares of Trump Media & Technology Group (TMGT), the parent company of Truth Social, a social networking service (SNS) founded by former U.S. President Donald Trump, surged 37.76%. U.S. food company McCormick rose 9.9% on strong first-quarter earnings. Seagate Technology, which Morgan Stanley upgraded to 'overweight,' gained 8.83%. Krispy Kreme soared 27.95% on news of expanding cooperation with McDonald's. Tesla jumped 6.49%.

Last week, the New York stock market broke through record highs after the Federal Reserve (Fed) maintained its forecast for three interest rate cuts this year following the Federal Open Market Committee (FOMC) meeting on the 20th. Although the market declined amid concerns over high levels, buying momentum has returned, attempting a rebound.

Warren Peace, co-founder of 3Point Research, said, "Despite concerns that the market rally has entered an overbought territory, investors are currently unable to reduce their exposure. Many still have low stock allocations, and they will move quickly to increase market exposure." He added, "The combination of a soft landing, a strong Fed, and strategists and institutions lacking investment means this rally can continue."

Durable goods orders in the U.S. for February, released on this day, increased by 1.4% compared to the previous month. This not only reversed the decline in January (-6.9%) but also exceeded market expectations (1.2%). The rise in durable goods orders last month, the first increase in three months, is spreading optimism about the economy.

Views among Fed officials differ regarding the future path of interest rates, which will influence market trends. On the previous day, Austan Goolsbee, president of the Federal Reserve Bank of Chicago, forecasted three rate cuts this year, consistent with the FOMC consensus. Goolsbee said, "We are in a somewhat dark period," but emphasized that the overall narrative of a continued decline in inflation remains unchanged. In contrast, Raphael Bostic, president of the Federal Reserve Bank of Atlanta, reaffirmed his earlier forecast of only one rate cut this year. Regarding his reduction in the expected number of rate cuts from two to one, he stated, "The goal and reality is that data should guide us," and added that additional signs of slowing inflation are needed before cutting rates.

Fed officials' remarks continue. On the 27th, Fed Governor Christopher Waller is scheduled to speak, followed by Fed Chair Jerome Powell on the 29th.

The most important indicator this week is the core Personal Consumption Expenditures (PCE) price index for February, to be released on the 29th. The core PCE price is expected to rise 0.3% month-over-month, a smaller increase than January's 0.4%. However, the annual increase is forecast to remain steady at 2.8%, the same level as January. With the Consumer Price Index (CPI) exceeding expert expectations for two consecutive months in January and February, attention is focused on the PCE price trend. However, since the 29th is Good Friday, a holiday before Easter, market reactions to the inflation data are likely to be observed after the New York stock market opens on April 1.

Government bond yields are steady. The U.S. 10-year Treasury yield, a global benchmark for bond yields, rose 2 basis points (1 bp = 0.01 percentage points) to 4.27%, while the 2-year Treasury yield, sensitive to monetary policy, increased 2 basis points to around 4.61%.

International oil prices are moving within a narrow range. West Texas Intermediate (WTI) crude oil rose $0.06 to $82.01 per barrel, while Brent crude fell $0.11 to $86.64 per barrel.