Investors bet that a higher-than-anticipated increase in inflation would not be enough to slow economic stimulus policies, as equities hit new highs and bond yields dropped. Consumer prices grew faster than expected last month, but investors speculated that the pace was not quick enough to justify any Federal Reserve policy reform. Bank stocks were hurt by the decline in yields. Nasdaq took a hit of (-1.05%) during the session.

The S&P 500 increased by (+0.33%) also. The Dow made a loss of (-0.20%).

Tesla delivered 184,800 new cars in the three months ending in March, up more than 100% from the same span last year and well ahead of Wall Street expectations of about 177,000 vehicles. Hence, Tesla shares soared on Monday after Canaccord Genuity upgraded the clean-tech carmaker’s ranking as it steps toward an “Apple-esque ecosystem” of energy goods.

• On Thursday, the US will release details on initial jobless claims, factory productivity, and retail sales.
• The government’s sale of 30-year bonds was met with high interest, extending Treasuries’ profits.
• Bitcoin hit an all-time high as the cryptocurrency market turned positive ahead of Coinbase Global Inc.’s IPO.
• GameStop and AMC, which fell 11% and 8.5% on Monday, respectively, failed to recoup losses on Tuesday, with Morgan Stanley predicting heightened uncertainty in the market’s speculative pockets in the months ahead.

Top gainers  

1. Tesla up 8.60% to close at $762.32.
2. Danaher up 3.41% to close at $243.84.
3. NVIDIA up 3.09% to close at $627.18.
4. Newmont Goldcorp up 2.71% to close at $62.25
5. Diamondback up 2.54% to close at $75.76.

Top losers

1. Alliance Data System down 5.35% to close at $105.72
2. Franklin Resource down 5.25% to close at $27.75
3. PVH down 4.25% to close at $108.29
4. Synchrony Financial down 3.92% to close at $41.46.
5. Micron down 3.60% to close at $92.15

Outlook

• The first-quarter earnings of banks and financial companies such as JPMorgan Chase & Co., Citigroup Inc., Bank of America Corp., Morgan Stanley, and Goldman Sachs Group Inc are expected to have an impact on the market performance.
• Consumer prices increased a higher-than-expected 2.6% in March, according to data released on Tuesday by the US Bureau of Labor Statistics, with fuel prices spiking 9.1% accounting for nearly half of the index’s price rise.
• Nairametrics, however, advises cautious buying in this era of growing uncertainties.

The Nigerian Stock Exchange market made another bearish run at the end of the trading session. The All-Share Index decreased by -0.29% to close at 38,601.83 from 38,712.55 index points.

• The Nigerian Stock Exchange market value currently stands at NGN 20.26Tr. Its Year-to-Date (YTD) returns currently stands at -4.14%.
• The market closed beneath expectation as JAPAULGOLD led 15 Gainers, and GUINNESS topped the chart of 18 Losers with a noticeable bearish movement by the NSE ASI.

Top gainers

1. JAPAULGOLD up +8.70% to close at N0.75
2. NAHCO up +7.39% to close at N 2.18
3. STERLNBANK up +7.14% to close at N1.80
4. STANBIC up +5.75% to close at N46.00
5. CHAMS up +5.00% to close at N0.21

Top losers

1. GUINNESS down -9.91% to close at N24.10
2. TRIPPLEG down -9.72% to close at N0.65
3. NCR down -9.68% to close at N2.52
4. CHAMPION down -9.09% to close at N2.00
5. JAIZBANK down -7.69% to close at N0.60

Outlook

Analysts’ predictions of a recovery in the market were halted by another bearish trend at the end of the trading session on Tuesday, though there is strong optimism that a recovery from the financial and consumer sectors will push the NSE-ASI back to profit.

Nairametrics advises cautious participation in the stock market in this era of growing uncertainties.