Rally in Chipmakers Drives Stocks to New Highs; Ukraine War Talks Fuel Optimism

Key Takeaways:

* Chipmakers' surge propelled stocks to record highs.
* Discussions between the US and Russia raised hopes for an end to the Ukraine conflict.
* The S&P 500 surpassed its January peak, but analysts caution against complacency.
* Favorable fundamentals support global equities, despite geopolitical uncertainties.
* Corporate profit outlook remains a concern, tempering the bull case for US stocks.

Market Performance:

* S&P 500: +0.2%
* Nasdaq 100: +0.2%
* Dow Jones Industrial Average: Unchanged
* MSCI World Index: +0.2%

Sector Highlights:

* Chipmakers: Intel Corp. and Super Micro Computer Inc. surged on positive outlooks.
* Healthcare: Walgreens Boots Alliance Inc. gained on takeover rumors.
* Technology: Meta Platforms Inc. paused its 20-day rally.

Bond Market:

* 10-year Treasury yield: +7 basis points to 4.55%
* German 10-year yield: Unchanged at 2.49%
* British 10-year yield: +3 basis points to 4.56%

Currency Market:

* Dollar Spot Index: +0.2%
* Euro: -0.4% to $1.0447
* British pound: -0.2% to $1.2606
* Japanese yen: -0.4% to 152.05 per dollar

Cryptocurrency Market:

* Bitcoin: -2.3% to $94,201.4
* Ether: -5.2% to $2,632.75

Key Events:

* Wednesday: New Zealand rate decision, Fed minutes
* Thursday: China loan prime rates, Eurozone consumer confidence, US initial jobless claims, Philadelphia Fed manufacturing index, Fed speakers
* Friday: Eurozone manufacturing & services PMI, US S&P Global manufacturing & services PMI, existing home sales, consumer sentiment

Analyst Commentary:

* "Favorable fundamentals should continue to support global equities' next leg up." - Solita Marcelli, UBS Global Wealth Management
* "Investors will want to see more positive data to offset concerns about stagflation." - Tom Essaye, The Sevens Report
* "Corporate America's profit outlook is souring, which could dent the bull case for US stocks." - Bloomberg Intelligence