The stock market is a complex system that tracks the performance of various financial instruments such as stocks, bonds, commodities, and foreign exchange. In Asia, the Chinese stock markets are closed for the Chinese New Year, while Japan’s Nikkei is up about 3% at a new record high of 38,000 and the Kospi index rises by 0.8%. US futures are trading slightly lower. On Wall Street, the Nasdaq fell 0.3%, the S&P500 lost 0.1%, and the Dow Jones added 0.3%, breaking an all-time high.
One of the most significant movements in the stock market was made by Piper Sandler when they upgraded their recommendation on a company from ‘neutral’ to ‘overweight’. This caused a significant jump in stock prices for that particular company. Another notable movement occurred with Beamr, an Israeli company that reported a collaboration with Nvidia which led to a massive increase in its market value by about 1500%. However, Monday.com saw a crash in its stock prices after presenting strong quarterly results but weak operating profit forecasts.
In terms of government debt, yields on both the 10-year and two-year bonds fell slightly last night in the US government debt market. Oil prices have also increased slightly with a Brent barrel selling for $82 today. According to Dr Michael Bafman, chief economist at Bank Leumi, there is expected to be high volatility in oil prices due to security events in the Middle East and decreases in oil stocks and production can lead to increased commodity prices.
There are several important economic indicators being published today including unemployment data from Great Britain and inflation data from Switzerland and USA respectively. The US inflation index is expected to increase by 0.2% at monthly rate while decreasing from its annual rate of 29% to 29% percent