NAB Morning Call Markets rally on hopes of more deals
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May 13, 2025 Skye Masters, NAB's market expert and finance aficionado, shares insights on a market invigorated by international deals and tech stock surges. She discusses a $142 billion defense deal with Saudi Arabia and the uplift from potential NVIDIA stock sales in the UAE. With positive economic indicators like a robust consumer confidence report and the S&P seeing its best performance of the year, optimism is in the air. Skye and host Phil dissect how these factors are reshaping investor sentiment and the landscape for US equities.
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Investors Rush Back Into Tech Stocks
- Investors were heavily underweight US stocks before recent trade talks, hitting the lowest level in two years.
- This positioning caused a surge in buying tech stocks after positive trade news, pushing markets higher.
Big US-Saudi Defence Deal Lifts Market
- The US and Saudi Arabia signed a $142 billion defence deal, touted as the largest ever.
- This, along with easing restrictions on selling NVIDIA chips to the UAE, is boosting investor sentiment significantly.
US Inflation Data Eases Market Concerns
- April US inflation data came in below expectations, with modest core CPI growth.
- This tempered fears about aggressive Fed tightening but didn't spark a significant bond rally.