Market Report Jun 11 2023
U.S. Federal Reserve's meeting is this Wednesday. The prevailing market sentiment suggests a postponement of the anticipated rate hikes.
A noteworthy development involves Ford and GM'srecent partnership with Tesla. They plan to enable Ford customers to utilize Tesla chargers, necessitating a change in Ford's charging unit. This week General Motors (GM) announced a similar move to use Tesla's Superchargers, further reinforcing Tesla's dominant position. This could lead to a higher usage of Tesla's charging stations, resulting in more income for Tesla, but potentially longer wait times for Tesla users. Furthermore, these partnerships are indicative of a potential industry trend. If more automakers adopt Tesla's charging standard, it could effectively render Tesla the universal standard for EV charging. This would not align with the Biden administration's desire for the CCS standard. However, automakers that fail to align with Tesla's standard may be at a disadvantage given Tesla's strong charging infrastructure.
Switching gears to the broader markets, volatility has remained low for the majority of the world indices, barring the Nikkei and the Russell, the latter of which includes small-cap companies. This volatility isn't necessarily negative; instead, it reflects the large movements characteristic of small-cap companies.
Regarding the market internals, more stocks have been advancing than declining on the New York Stock Exchange and the NASDAQ, indicating overall market strength. However, it's essential to note that despite the S&P 500 moving into bull market territory, many stocks remain in a bear market, suggesting that the recovery is not widespread. Lastly, the VIX index, a measure of market volatility, is considerably low, which indicates a calm market environment. This, coupled with the modest rise in yields, suggests that the market remains steady and performing well. However, caution should be exercised given the ongoing rotation from large-cap to smaller-sized companies.
Contact us at https://dt.zone/contact to request a free trial to our trading community and watch the full video
LEARN MORE & CONNECT WITH US:
► Twitter: https://twitter.com/DynamicTrader
► Instagram: https://instagram.com/DynamicTrader
►Contact us: https://dt.zone/contact
Anne Chapman
Let's go trade!
