Macro Update
US equities rally: The S&P 500 (+1.02%), Nasdaq (+0.89%) and Dow (+1.62%) all closed higher, with the S&P 500 and Nasdaq recording their strongest monthly gains since 2020.
Earnings drive gains: Strong corporate results broadened the advance, led by a 10% surge in Alphabet and record highs for Caterpillar, while Eli Lilly gained after raising its outlook.
Mixed big tech reaction: Apple rose in extended trading after reporting record quarterly revenue of $111.2bn (+17% YoY), while Meta (-8.7%) and Microsoft (-3.9%) declined on concerns over AI-related spending.
Resilient US data: First-quarter GDP growth of 2.0% and historically low jobless claims supported sentiment, although inflation above 3% continues to complicate rate cut expectations.
Central banks turn cautious: The Fed, ECB, BoE and BoJ all held rates but maintained a hawkish bias as energy-driven inflation risks persist.
Yen intervention and oil focus: Japan intervened to support the yen, while oil prices remained elevated amid Middle East tensions, sustaining pressure on inflation and the global policy outlook.
