Market Outlook 🚀 - Semiconductor stocks could fall

Bitcoin tops $30,000

Inside.com Part of   Network April 11, 2023

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The Numbers: The semiconductor industry has outperformed any other sector this year, gaining 30% in Q1 before falling this month to bring its annual gains to just over 20%. The Story: According to BTIG technical analyst Jonathan Krinsky, the technology industry, specifically the semiconductor sector, is likely to decline significantly soon.  Zoom Out: Technology companies have been surprisingly strong this year, rising despite a high-interest environment. However, tech stocks typically fall when borrowing costs are high as they require extensive capital for R&D, which is made more costly when the price of lending rises.

US Markets Stock futures rose overnight after a generally positive day for U.S. equities.  Investors are preparing for major economic data to be released later this week, including the Consumer Price Index on Wednesday and the Producer Price Index on Thursday.  Earnings season also starts this week. Most banks will release their reports later this week, providing insights into their financials following last month's turmoil.  The current 10 Year U.S. Treasury yield is set at 3.40090% Dow Jones  33,586.52 0.30% S&P 500  4,109.11 0.10% Nasdaq  12,084.36 -0.03% Russell 2000 1,772.44 1.02% *Stock Market data as of the last closing bell. Data received directly from the reference indexes through ICE Data Services. Do you not understand any of these figures? Check out our explainer.

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Canadian Markets Investors in Canada are holding positions ahead of the Bank of Canada's monetary policy announcement on Wednesday.  Data from Statistics Canada shows that the Canadian economy is still growing faster than expected.  The current 4.5% interest rate is the highest since 2007.  The latest data (February 2023) shows that annual inflation has dropped from a high of over 8% to 5.2%.  TSX  20,275.82 0.39% *Canadian stock prices are as of the last close. Data received directly from the references indexes through ICE Data Services

Asian Markets Stocks in Asia advanced on Monday after most markets were closed for a holiday on Friday.  Markets in Australia and Hong Kong were also closed on Monday. Shares of Nintendo were up following the release of the Super Mario Bros movie.  The new governor of the Bank of Japan, Kazuo Ueda is reportedly considering changing the monetary policy of his predecessor but is unlikely to roll out drastic changes in the short term.  S&P Asia 50 4,755.37 0.28% Japan (Nikkei 225) 28,013.86 1.38% South Korea (KOSPI) 2,547.32 1.40% China (Hang Seng) 20,386.38 0.27% India (SENSEX) 59,846.51 0.02% *Asian stock prices are as of 7 am ET. Data received directly from the reference indexes through ICE Data Services.

Commodities Oil prices fell slightly on Monday amid concerns about monetary policy decisions and how more interest rate hikes could impact markets.  Brent lost 0.2% and U.S. West Texas Intermediate fell 0.1%. Both benchmarks rebounded from heavier losses earlier in the day.  Crude oil gained 6% last week and has now been rising for three consecutive weeks.  Investors are looking forward to OPEC's monthly report on Thursday and the International Energy Agency's report on Friday.  Oil (NYSEARCA:OIL) 30.27 -1.01% Gold (NYSEARCA:GLD) 185.11 -0.74% Silver (NYSEARCA:SLV) 22.88 -0.04% Corn (NYSEARCA:CORN) 25.08 1.37% Lumber (NASDAQ:WOOD) 71.28 0.27% *Commodity prices are as of 7 am ET. Data from MarketWatch. To understand why investors track the prices of these commodities, click here.

Currency Exchange Rates The U.S. Dollar rose on Monday, benefiting from the strong jobs report released on Friday.  The Yen lost ground amid uncertainty regarding monetary policy under the new governor of the Bank of Japan.  Investors currently are pricing in a 70% chance of a 25 basis point interest rate hike at the next Federal Reserve meeting in early May.  The U.S. Dollar Index gained 0.67% on Monday.  UK(GBP) £0.81 0.13% Europe (EURO) €0.92 1.06% Canada (Canadian Dollar) $1.35 -0.45% Japan (Yen) ¥133.40 0.95% *Exchange rates as of 7 am ET. Data from Morningstar Financial Research. To understand why we track these currencies and the differences between them, click here.

Cryptocurrency Bitcoin soared above $30,000 on Monday, ahead of this week's inflation data.  This is the first time since June that Bitcoin has crossed the $30,000 psychological threshold.  Investors believe that recent gains give Bitcoin enough momentum to rise further as short sellers will be forced to cover and buy.  Bitcoin has gained over 80% so far this year.  Bitcoin $30,120.20 7.76% Ethereum $1,924.43 3.49% Litecoin $94.35 4.10% Bitcoin Cash $128.70 3.87% *Exchange rates as of 7 am ET. Data from Morningstar Financial Research. To understand why we track these currencies and the differences between them, click here.

Liam Gill is a lawyer who raised $250k with just an idea and turned it into a $35M tech startup.  He now teaches entrepreneurs how to Pitch, Negotiate and Strategize so they can do the same.  Let's Connect Editor Eduardo Garcia is a writer and editor based in New York. He is the author of "Things You Can Do," an illustrated book about climate action. Bylines in The New York Times, The Guardian, Slate, Scientific American, and others. In one of his previous lives, Eduardo worked as a Reuters correspondent in Latin America for nearly a decade.

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