US Stock Market Key Points:
- The S&P 500, Dow and Nasdaq 100 wrestle to seek out sturdy route regardless of disappointing financial knowledge.
- Housing Sector and PMIs present clear indicators of a slowdown. USD index (DXY) responds and falls throughout right now’s session.
- All eyes are on the Jackson Hole Economic Symposium on the finish of the week.
Corporate earnings season is coming to an finish and traders are specializing in financial knowledge, which is changing into a bigger driver of market actions. Today, a pair objects on the Economic Calendarfueled recession fears because it confirmed a disappointing image each in the U.S. housing sector and in manufacturing and companies exercise. New house gross sales declined sharply in July and enterprise exercise from manufacturing and repair suppliers confirmed weaker demand in August.The contraction within the Service sector is worrisome because it accounts for 76.9% of U.S. GDP.
The preliminary responsewas a decline in US Treasury yields, a rally in Gold and a drop within the US greenback index (DXY). The euro rebounded from a low of 0.9899 to climb again above parity whereas the USD/JPY fell roughly 180 pips within the aftermath of the discharge. EUR/USD is now buying and selling at 0.9968, whereas USD/JPY is at 136.78.
Also of notice is the US inventory market.Major indices had their worst day since June yesterday, nevertheless, after right now’s detrimental knowledge, indices confirmed good points as an preliminary response to decrease yields- however then did not observe via as yields rebounded.
The Dow and S&P 500 closed with a lack of 0.47% and 0.22% respectively. The Real Estate sector suffered a pointy drop of 1.46% within the face of a 12.7% decline of latest house gross sales in July, the worst studying since 2016. The finest performing sector was Energy, gaining greater than 3.5% after the Saudi Energy Minister mentioned that OPEC+ members might reduce output sooner or later to “stabilize” the market. The WTI contract for October closed at 93.60. The subsequent stage to observe is round $95.08 pb the place the 200 Day Moving Averagetouches the 23.6% Fibonacci retracement.
Light Crude Oil Futures – DailyChart
Regarding earnings, shopper discretionary corporations corresponding to Macy’s and Dick’s Sporting Goods stunned markets by reporting higher than anticipated income. Meanwhile, know-how inventory Zoom Video Communications missed expectations and lowered its full 12 months steering, which contrasted the sturdy outcomes by Palo Alto Networks Inc.
Notably, detrimentalfinancial knowledge and blended earnings from tech corporations did not appear to weigh a lot on the Nasdaq. The index ended flat. However, it is going to be fascinating to see the way it responds to Fed Chairman Jerome Powell’s extremely anticipated speech on Friday on the Jackson Hole Symposium.
The space to observe on the Nasdaq is between 13,000 and 12,700 the placetright here is confluence with the 100-day SMA and a sturdy assist zone.
Nasdaq100 – Daily Price Chart
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—Written by Cecilia Sanchez-Corona, Research Team, DailyFX