The US stock market rally continues to feed itself with the largesse of its tech sector. The world has become immune to the bandying around of so many zeroes, but the darling Nvidia now expects a staggering $500 billion of business over the next five quarters. Adding to the self-propelled hike in bourses was the announcement of a new agreement between Microsoft and OpenAI.
The optimist would argue that the scaremongers of trade tariffs were badly mistaken. Investors cannot be fooled, and the relentless march north in equities is a clear sign that reducing trade deficits does not harm the economy. A more nuanced approach would be to assert that what matters is not what the U.S. President says but what he does.
The indefatigable US investor was rather teed up another swing at equities this morning by the US CPI report produced on Friday. Both the headline and core US inflation numbers came in at 3 percent, being under the predicted 3.1 percent for the pair.
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