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The article discusses the decline in U.S. stock market indicators, particularly the S&P 500, where only 30% of the companies are above their 50-day moving averages. This reflects a shrinking market range and raises concerns about the sustainability of recent gains. The main support for the index came from gains in the shares of tech giants Nvidia and Meta, while the retail, real estate, and financial sectors experienced declines due to rising energy prices and reduced consumer purchasing power. In contrast, the MSCI Asia-Pacific Index rose by 0.4%, supported by gains in Asian stock markets, with the Hang Seng Index in Hong Kong climbing by 1.27%. Economic outlooks are influenced by a federal budget deficit of about 6% of GDP, which has led to an increase in 10-year Treasury bond yields to 5.36%, negatively impacting variable-rate loan and mortgage sectors. Additionally, inflation expectations have risen due to spikes in fuel prices, resulting in consumer confidence dropping to its lowest point in 12 years and an increase in credit card debt. It is believed that the ongoing rise in term premiums and the attraction of liquidity toward the technology and semiconductor sectors are hindering a full-market recovery, with the potential for sharp price corrections if investor sentiment declines.
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