Abstract:Strong Gains in S&P 500, Nasdaq 100, and Dow Jones; Weaker Economic Data Impact Fed Rate Hike Expectations
MARKET WRAP
Market Wrap: Stocks, Bonds, Commodities
On Tuesday, U.S. stocks rallied for a third session:
S&P 500: +64 points (+1.45%) to 4,497
Nasdaq 100: +324 points (+2.15%) to 15,376
Dow Jones Industrial Average: +292 points (+0.85%) to 34,852
U.S. Labor Department's JOLTS report showed job openings fell to 8.83 million in July, lowest since March 2021.
Conference Board consumer confidence index dropped to 106.1 in August (vs 116.0 expected), possibly impacting U.S. Fed rate hike expectations.
U.S. 10-year Treasury yield sank 9 basis points to 4.112%, 2-year yield dipped below 5%.
Top performing sectors: Automobiles (+6.62%), Semiconductors (+3.24%), Telecoms Services (+3.02%).
Big-tech stocks surged, including Tesla (+7.69%), Nvidia (+4.16%), Alphabet (+2.72%), Meta Platforms (+2.66%), Apple (+2.18%).
Best Buy (BBY) rose 3.86% after strong quarterly earnings and raised guidance.
Bitcoin and related stocks surged due to a Federal court ruling favoring Grayscale Investments' Bitcoin ETF application:
Bitcoin: +6.20% to $27,700
Marathon Digital (MARA): +28.81%
MicroStrategy (MSTR): +10.79%
Coinbase Global (COIN): +14.91%
European stocks closed higher:
DAX 40: +0.88%
CAC 40: +0.67%
FTSE 100: +1.72%
Commodities: Commodity prices climbed, U.S. WTI crude futures added $1.10 to $81.23 a barrel. Gold price increased $17 to $1,937 an ounce.
Market Wrap: Forex
U.S. dollar index retreated to 103.43.
EUR/USD: +66 pips to 1.0885.
GBP/USD: +48 pips to 1.265.
AUD/USD: +54 pips to 0.6483.
USD/JPY: -76 pips to 145.78.
USD/CHF: -60 pips to 0.8778.
USD/CAD: -41 pips to 1.3558.
Forex Analysis
EUR/USD Intraday: Upside Prevails
Pivot: 1.0840
Preference: Long positions above 1.0840, targets at 1.0890 & 1.0915.
Alternative: Below 1.0840, targets at 1.0820 & 1.0800.
RSI indicates upward movement.
GBP/USD Intraday: Bullish Bias Above 1.2610
Pivot: 1.2610
Preference: Long positions above 1.2610, targets at 1.2655 & 1.2680.
Alternative: Below 1.2610, targets at 1.2585 & 1.2560.
Consolidation might continue, but its extent should be limited.
USD/JPY Intraday: Key Resistance at 146.35
Pivot: 146.35
Preference: Short positions below 146.35, targets at 145.65 & 145.30.
Alternative: Above 146.35, targets at 146.70 & 147.00.
Resistance at 146.35 likely limits upward potential.
Dow Jones (CME) Intraday: Intraday Support Around 34475.00
Pivot: 34475.00
Preference: Long positions above 34475.00, targets at 35145.00 & 35440.00.
Alternative: Below 34475.00, targets at 34300.00 & 34070.00.
Next resistances at 35145.00 and 35440.00.
(Note: Due to market volatility, some key levels might already have been reached.)
Nvidia (NVDA) contributed to the pressure on the Nasdaq 100 index as it slid a further 1.93%. Reuters reported that the chip-maker is delaying the launch of a new artificial intelligence chip for Chinese customers.
U.S. Stocks Grapple with 10-Year Yield Near 5%, Powell's Inflation Remarks Add Pressure
Dow Jones Drops 173 Points, S&P 500 Sheds 27 Points, Nasdaq 100 Closes Lower by 57 Points
Equities are gaining ground as risk assets attempt to stage a comeback after Trump's latest jawboning tweets on the US-China trade war. But, effectiveness may prove difficult as the President has a history of attempting to move markets.