US Stocks Mixed; Economic Data and Earnings Awaited

The S&P 500 and the Dow experienced marginal declines, while the Nasdaq saw slight gains. Investors also showed restraint in their expectations regarding potential interest rate cuts by the Federal Reserve. Meanwhile, oil prices saw a decline as focus shifted towards discussions surrounding a possible truce in Gaza.

U.S. stock futures remained relatively stable, indicating subdued activity following a lackluster performance on Wall Street amid anticipation of significant economic data releases and corporate earnings reports. The S&P 500 index closed with marginal fluctuations, reflecting cautious trading as investors awaited upcoming inflation data and the onset of first-quarter earnings announcements.

Despite solid gains registered in the preceding week, major indices also faced substantial losses, primarily due to uncertainties surrounding the Federal Reserve's stance on interest rates. Investors eagerly anticipated the release of March's consumer price inflation figures, particularly in the wake of stronger-than-expected job growth data in the United States, which cast doubt on the possibility of an immediate interest rate cut by the Federal Reserve.

Within the S&P 500, six of the 11 major sectors ended lower, with energy stocks suffering the most significant drop, while real estate stocks saw notable gains. Tesla's shares rose by 4.9% after CEO Elon Musk announced plans to unveil the company's self-driving Robotaxi in August.

Boeing faced setbacks after an engine cover fell off a Southwest Airlines aircraft during takeoff in Denver, prompting an investigation by the Federal Aviation Administration. Moody's Investors Service placed Boeing's ratings under review for a possible downgrade, contributing to a nearly 30% decline in the company's stock year-to-date.

Energy stocks remained flat due to falling oil prices amid hopes for a ceasefire in the Israel-Hamas conflict, which eased concerns about supply disruptions from the Middle East. Oil prices dropped sharply as confidence in a ceasefire grew, with expectations of tighter oil supplies persisting due to production cuts by OPEC and Russia.

Meanwhile, cryptocurrency stocks, including Coinbase Global, MicroStrategy, RIOT, MARA, and COIN, surged as Bitcoin prices surpassed $72,000 for the first time ever.

U.S. Treasury yields moved higher on Monday as investors recalibrated their expectations for the depth of potential interest rate cuts by the Federal Reserve, spurred by Friday's robust jobs report. The yield on benchmark U.S. 10-year notes rose to a four-month high, while 30-year bond yields also experienced an uptick. This shift in bond yields was accompanied by a rise in the 2-year note yield, typically indicative of changes in interest rate expectations.

Investors showed anticipation for the upcoming first-quarter earnings season, focusing on major banks like JPMorgan Chase, Citigroup, and Wells Fargo, which are set to report earnings. Delta Airlines and BlackRock are also scheduled to provide quarterly updates.

Market observers noted a shift in investors' sentiment towards an expected pickup in economic growth, potentially reducing the likelihood of Federal Reserve rate cuts. Sectors linked to economic growth, such as financials, energy, and industrials, outperformed, while quality remained a key consideration for investors.

Wells Fargo analysts projected continued growth in the S&P 500, citing the ongoing bull market driven by artificial intelligence. JPMorgan raised its price targets for Spotify and Netflix, maintaining an optimistic outlook for both companies ahead of their earnings releases. As a result, it could impact the broader US stock market, which is currently experiencing a positive trend. However, there remains the possibility of ongoing volatility and a gradual reduction in the risk of reversal.

Data for Technical Analysis (30Min) CFD US 500 [S&P 500]

Resistance : 5205.4, 5205.8, 5206.6

Support : 5203.8, 5203.4, 5202.6                           

30Min Outlook

Source: TradingView                                                     

Buy/Long 1 If the support at the price range 5201.8 - 5203.8 is touched, but the support at 5203.8 cannot be broken, the TP may be set around 5205.8 and the SL around 5201.0, or up to the risk appetite.

Buy/Long 2 If the resistance can be broken at the price range of 5205.4 - 5207.4, TP may be set around 5209.0 and SL around 5203.0, or up to the risk appetite.       

Sell/Short 1 If the resistance at the price range 5205.4 - 5207.4 is touched, but the resistance at 5205.4 cannot be broken, the TP may be set around 5203.8 and the SL around 5208.4, or up to the risk appetite.

Sell/Short 2 If the support can be broken at the price range of 5201.8 - 5203.8, TP may be set around 5200.0 and SL around 5206.4, or up to the risk appetite.       

Pivot Points Apr 9, 2024 03:04AM GMT