U.S. Stocks Hover Near Record Highs as Key Economic Data, and Corporate Earnings Take Center Stage

U.S. stock index futures dipped slightly on Monday evening as Wall Street hovered near record highs. Investors are closely watching the Federal Reserve for more signals regarding interest rates. The week started slowly, with markets recovering slightly from Friday's losses but staying near the record highs reached last week following a major rate cut by the Fed.

Last week’s substantial 50-basis-point interest rate cut, the first since 2020, drove the S&P 500 and Dow Jones Industrial Average to new records, while the Nasdaq also gained, though it lagged due to sluggishness in tech stocks and increased interest in economically sensitive sectors. By the week’s end, all three major indices posted gains, with the S&P 500 rising 1.36%, the Dow climbing 1.62%, and the Nasdaq up 1.49%.

This week, investors are particularly focused on several key Federal Reserve speeches, including Chair Powell’s remarks, which may offer further insights into the direction of interest rates and regulatory policy. Key economic data is also expected, including Q2 GDP figures and personal income and consumption reports for August.

In corporate news, Intel stock rose 3.05% after reports that Apollo Global Management offered a $5 billion investment, aimed at helping the chipmaker, which is struggling with declining sales and significant cost-cutting measures. Meanwhile, General Motors fell 1.72% following a downgrade by Bernstein.

Earnings reports are expected from major companies like Micron Technology and Costco. Micron’s revenue is projected to surge 90% year-over-year, driven by strong demand for AI memory chips, though some analysts are cautious due to high inventory levels and a slowing memory market recovery. Other key earnings updates include Accenture, BlackBerry, and AutoZone.

With the market rally driven by the Fed's interest rate cuts, future gains may depend on upcoming economic data, particularly Friday’s personal consumption expenditures report, which could be a key indicator for future Fed policy.

The upcoming U.S. presidential election, featuring a tight race between Donald Trump and Kamala Harris, could also add volatility to the markets. UBS strategists noted that election factors may come to the forefront if economic data does not deteriorate sharply.

Data for Technical Analysis (1H) CFD US 500 [S&P 500]

Resistance : 5722.3, 5723.7, 5725.8

Support : 5718.1, 5716.7, 5714.6                        

1H Outlook

Source: TradingView                                               

Buy/Long 1 If the support at the price range 5713.1 - 5718.1 is touched, but the support at 5718.1 cannot be broken, the TP may be set around 5723.4 and the SL around 5710.6, or up to the risk appetite.

Buy/Long 2 If the resistance can be broken at the price range of 5722.3 - 5727.3, TP may be set around 5734.0 and SL around 5715.6, or up to the risk appetite.       

Sell/Short 1 If the resistance at the price range 5722.3 - 5727.3 is touched, but the resistance at 5722.3 cannot be broken, the TP may be set around 5717.8 and the SL around 5729.8, or up to the risk appetite.

Sell/Short 2 If the support can be broken at the price range of 5713.1 - 5718.1, TP may be set around 5708.0 and SL around 5724.8, or up to the risk appetite.       

Pivot Points Sep 24, 2024 06:15AM GMT