Stocks Reach Record Highs on Tech Optimism

The stock market soared to new heights on Monday, with the Dow and S&P 500 hitting record highs, driven by investor optimism in the tech sector ahead of major earnings reports. Key events such as the Federal Reserve's policy-setting meeting and the monthly jobs report later in the week also fueled market enthusiasm.

Last week, the S&P 500 surged by 1.1%, edging closer to the milestone of 5000. Despite concerns initially sparked by underwhelming earnings from industrial giants like GE, the market rallied on positive economic data and strong tech earnings, including robust performances from Netflix.

Tech stocks were particularly buoyant as investors anticipated a flurry of earnings reports from major players. Alphabet, Microsoft, Apple, Amazon, and Meta Platforms were among those slated to announce their results, with SoFi Technologies Inc. emerging as a standout performer, surging by 20% after beating Wall Street estimates. Conversely, iRobot saw a 9% decline after terminating its acquisition deal with Amazon.

The positive momentum in the tech sector was aided by a dip in Treasury yields following the U.S. Treasury's revised borrowing forecast, easing concerns about excessive borrowing. Meanwhile, a Morgan Stanley consumer survey revealed a notable uptick in consumer confidence, signaling potential growth in hardware expenditure in the coming months.

On Tuesday, the dollar remained relatively stable against other major currencies, with traders keeping a close eye on the Federal Reserve's upcoming monetary policy decision for hints about potential rate cuts. Simultaneously, the release of job opening data from the U.S. Department of Labor Statistics later in the day was anticipated to provide a preview of the highly anticipated payroll report scheduled for Friday.

The economic calendar for the week included data on JOLTS job openings, consumer confidence, private sector payrolls, and weekly jobless claims— a slew of high-impact events. Earnings reports from major tech firms, collectively representing a significant portion of the S&P 500, took center stage and were likely to influence trends in the US stock market.

Data for Technical Analysis (5H) CFD US 500 [S&P 500]

Resistance : 4930.2, 4932.1, 4935.2

Support : 4924.0, 4922.1, 4919.0                              

5H Outlook

1H Outlook

Source: Investing.com          

Buy/Long 1 If the support at the price range 4914.0 - 4924.0 is touched, but the support at 4924.0 cannot be broken, the TP may be set around 4931.6 and the SL around 4909.0, or up to the risk appetite.

Buy/Long 2 If the resistance can be broken at the price range of 4930.2 - 4940.2, TP may be set around 4945.0 and SL around 4919.0, or up to the risk appetite.       

Sell/Short 1 If the resistance at the price range 4930.2 - 4940.2 is touched, but the resistance at 4930.2 cannot be broken, the TP may be set around 4923.5 and the SL around 4945.0, or up to the risk appetite.

Sell/Short 2 If the support can be broken at the price range of 4914.0 - 4924.0, TP may be set around 4895.0 and SL around 4935.0, or up to the risk appetite.       

Pivot Points Jan 30, 2024 01:57AM GMT