S&P 500, Nasdaq 100 – Talking Points
- Stocks ease from in a single day highs as US merchants return to their desks
- Powell, Brainard set to talk as Fedspeak stays in focus
- ECB assembly might do little to stem USD power
US fairness markets stay uneven following the opening bell as merchants jostle forward of main occasion threat later this week. Market individuals can be seeking to feedback from Fed Chair Jerome Powell and Vice Chair Lael Brainard later this week together with a key rate of interest determination from the European Central Bank (ECB).
Comments from Federal Reserve officers can be key in shaping the tone into the FOMC coverage assembly later this month. Fresh commentary in addition to subsequent week’s CPI print could also be a trigger for elevated market volatility as the talk nonetheless rages over whether or not the Fed will go 50 or 75 foundation factors.
Upcoming Economic Calendar
Courtesy of the DailyFX Economic Calendar
S&P 500 futures (ES) have been muted throughout the Monday session with US merchants offline for the Labor Day vacation. Overnight positive factors have been capped by the 3964 stage as worth slowly gravitated decrease into the opening bell in New York. Price has been testing the 0.382 fib retracement of the advance off of the June lows, with every dip into 3900 getting purchased up.
Risk seems heavy right here, with rips getting offered whereas information weakens globally. As was the best way on the best way up, it stays smart to not “battle the Fed” on the best way down as quantitative tightening (QT) ramps as much as full pace this month. With QT being an unknown variable at this second, heightened rate of interest volatility may push fairness markets decrease. Should the 3900 zone break, main fib assist round 3800 might supply some assist for sinking costs.
S&P 500 Futures (ES) 1 Hour Chart
Chart created with Buying and sellingView
Nasdaq 100 futures (NQ) fall into the identical boat as ES, given the tech dependence and overlap of the 2. NQ was in a position to crawl above 12200 throughout the in a single day session, however the advance was firmly rejected with sellers taking worth as little as 11930. As Treasury yields proceed to rise, the outlook for the tech index seems weak. Should psychological assist at 12000 fail, worth may sink so far as the assist zone round 11500. If Chair Powell stays as hawkish this week as he was at Jackson Hole, high-beta tech shares may bear the brunt of one other cascade in threat belongings.
Nasdaq 100 Futures (NQ) 1 Hour Chart
Chart created with Buying and sellingView
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— Written by Brendan Fagan
To contact Brendan, use the feedback part under or @BrendanFaganFX on Twitter
