Stock Market Update Thursday May 6, 2024

Stock Market Update Thursday May 6, 2024 Equity markets experienced a period of consolidation following yesterday's impressive gains as investors await the release of the May payrolls report on Friday morning. The upcoming nonfarm payroll data is poised to play a pivotal role in shaping the market narrative. Additionally, the much-anticipated Monday events, including the Nvidia stock split and Apple's AI announcement (potentially an "airball"), coupled with the FOMC meeting, are also on the radar. However, the FOMC meeting's impact is contingent on whether the Fed signals a dovish policy stance.

Away From Stocks: Treasuries continued their recent rally, with yields mostly easing by one to two basis points. Commodities saw mixed performance, with WTI crude oil rebounding above $75 per barrel, while gold edged higher to $2,373 per ounce.  Bitcoin, however, experienced a minor pullback to $70,600, and the VIX volatility index remained subdued below 13. Reserve Bank credit contracted by $37.7 billion over the past week, reducing the Fed's portfolio of interest-bearing assets to $7.223 trillion. This marks a $120 billion decrease since the beginning of May and a 19% reduction from the early 2022 peak