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Analysis

Tech rally turns to selloff ahead of NFP and US election - Stock Markets

S&P 500 headed for second weekly dip as gains turn to lossesNasdaq pulls back from record highs as AI jitters returnApple earnings add to outlook worries but Amazon impressesTech rally stumblesIt’s been a turbulent week for Wall Street as, despite a positive start, renewed concerns about excessive spending on artificial intelligence (AI) dragged Big Tech stocks lower mid-week.
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Daily Comment – Dollar slips amid stronger yen and euro, data barrage continues

Yen up after Bank of Japan sounds more hawkish than expectedEuro climbs on stronger German GDP and inflationDollar choppy after mixed US data, focus turns to PCE inflationStocks struggle on earnings outlook worriesYen gets unexpected boostThe yen firmed up on Thursday after the Bank of Japan struck a somewhat more hawkish-than-expected tone as it kept rates on hold but signalled it remains on track to raise rates further.
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Daily Comment – Wall Street lifted by earnings as election jitters boost gold

US dollar and gold remain elevated as markets bet on Trump winBut Nasdaq hits record amid optimism about tech earningsSlew of data awaited out of the US and Eurozone, UK budget also eyedUS election angst still driving sentiment  Growing anxiety about the US presidential election continued to set the market mood on Wednesday, with Republican candidate Donald Trump extending his gains in the polls.
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Daily Comment – Dollar maintains gains amidst fragile market conditions

Markets prepare for a 10-day long rollercoaster rideFocus today on earnings but key US data in sightGold and bitcoin rally, oil suffers, and 10-year US yield reaches 4.3%Yen suffering might linger as party negotiations continueImportant data week, Alphabet reports todayMarket participants are gradually preparing for an action-packed week, with Friday’s US jobs report being the key event, that also includes some major earnings releases.
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S&P 500 hits another record on Fed put but tech stocks look shaky – Stock Markets

S&P 500 and Dow Jones close at new peaks but Nasdaq stuttersFed rate cut boosts risk appetite, China stimulus further lifts sentimentBut tech stocks are mixed as AI rally cools, earnings doubts creep inThe bulls return from summer hiatusAfter a prolonged period of unusual calm in the markets, volatility was back with a vengeance during the summer and autumn got off to an equally bumpy start.
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Market Comment – Fed hints at cut but dollar unbruised, pound slips ahead of BoE

Fed’s Powell opens the door to a September rate cut, stocks rebound But dollar only tumbles against the yen, which surges after BoJ hike BoE rate cut bets intensity ahead of decision, pressuring sterling Oil comes back to life as ME conflict takes another dangerous turn Powell flags a possible September cut The Federal Reserve delivered no surprises on Wednesday, keeping interest rates unchanged as expected.
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Technical Analysis – Facebook stock holds bullish bias but strong resistance awaits near SMAs

Facebook stock pulls back off 442 Uptrend line acts as support level RSI and MACD suggest more decreases Facebook stock price has rebounded somewhat after falling to a 12-week low of 442 on July 25 but momentum indicators now suggest that the market sentiment might get worse before getting better as the RSI is reversing to the downside below its 50-neutral threshold.
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Is Meta stock still attractive? - Stock Markets

Meta platforms to reveal moderate growth in earnings Focus to stay on the AI front but outlook needs to brighten Meta stock becomes more attractive but not out of the woods yet   Why Q1 season did not go well? The tech earnings season will heat up next week, with Facebook-parent Meta Platforms reporting its Q2 financial statements ahead of its mega tech peers Amazon and Apple on Wednesday after the market close.
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Meta shares in a steady recovery after Q1 earnings plunge Stock remains rangebound below 50-day SMA in past few sessions Momentum indicators fail to turn positive Meta’s (Facebook) stock has been attempting a rebound in the short term following a 15% drop in the aftermath of its Q1 earnings announcement on April 24. However, the recovery has been on hold in the past few sessions as the price is trading sideways a tad beneath its 50-day simple moving average (SMA).
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Market Comment – Yen tumbles to fresh lows, dollar awaits GDP

Yen falls to new 34-year low ahead of BoJ decision Dollar traders await GDP and PCE data Wall Street mixed, gold stays on the back foot Will Ueda appear in a hawkish suit this time? The yen extended its tumble to a fresh 34-year low, falling below 155.00 per dollar. With less than 24 hours to go for the Bank of Japan’s decision, investors are likely sitting on the edge of their seats in anticipation of the gathering’s outcome.
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Meta stock pulls back from its all-time high Violates the 50-day SMA ahead of Q1 earnings call Momentum indicators turn negative Meta’s (Facebook) stock has been in a steep uptrend since the beginning of the year, posting a fresh all-time high of 531.00 on April 8. However, the pair has come under selling pressure following its recent record peak, with the bears pushing the price below the 50-day simple moving average (SMA) ahead of its Q1 earnings.
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Magnificent 7 earnings assert dominance, focus shifts to Nvidia – Stock Markets

Magnificent 7 earnings endorse their relentless rally Tesla lags, while Apple shows some signs of weakness Valuations are stretched despite rosy projections   In their own world The so-called Magnificent Seven group comprised of Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms and Tesla has gone parabolic since early 2023, outperforming the broader US stock market by a wide margin.
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Technical Analysis – Meta’s stock to skyrocket on earnings beat

Meta’s stock to jump to a record high Traders may look for some profit-taking   Facebook parent Meta platforms beat Q4 earnings expectations after Thursday’s market close and announced its first ever dividend to shareholders and a huge amount of stock buybacks. The stock has been trading 17.05% higher during Friday’s pre-market hours around 460 in the aftermath of its earnings, where the ascending trendline drawn from February 2023 is located.
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Is the 5,000 milestone in sight for the S&P 500? – Stock Markets

Mega-cap stocks drive S&P 500 towards 5,000 milestone AI and tech dominate the bull charge to unchartered territory But how sustainable is the uptrend? A wobbly start to 2024 It wasn’t the best start for Wall Street in 2024 as the major indices stumbled during the first week of the new year. However, it didn’t take long for Fed rate cut expectations to take off again and revive risk appetite.
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Market Comment – Powell pushes back on March rate cut, BoE on tap

Fed’s Powell says March rate cut not the “base case” Dollar gains, but Treasury yields slide BoE to stand pat, focus to fall on guidance Wall Street tumbles, awaits more earnings results Dollar gains on less-dovish-than-expected Fed The US dollar gained against all but two of its major counterparts yesterday, losing ground only against the yen and ending the day virtually unchanged against the franc.
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Meta Q4 Earnings: Strong ad business and cost-cutting to boost profits – Stock Markets

Meta Platforms earnings are out on Thursday after closing bell Both earnings and revenue expected to skyrocket Stock trades at cheap multiples despite consecutive record highs Stellar year Facebook’s parent company, Meta Platforms Inc, was the second-best performing stock of the S&P 500 index in 2023, lagging only behind Nvidia.
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Market Comment – Dollar climbs above 150 yen as Treasury yields rebound

Treasury yields rebound, lift the dollar ahead of US GDP data Dollar/yen rises past 150, rings intervention alarm bells ECB to take the sidelines, focus to fall on forward guidance Wall Street tumbles as Alphabet disappoints Will US GDP data add more fuel to the dollar’s engines? The US dollar extended its gains as US Treasury yields rebounded, with the 10-year benchmark rate resuming a move towards the psychological zone of 5.0%, briefly breached on Monday.
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Meta Q3 earnings next on the agenda – Stock Markets

Meta to report strong earnings after market closes Focus remains on AI & Metaverse outlook   Earnings estimates Meta platforms, the parent company of Facebook and Instagram, will announce third-quarter earnings on Wednesday after the market closes. Forecasts point to notable growth, with the consensus recommendation from analysts polled by Refinitiv being a buy.
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Meta stock pulls back from 2023 peak Halts decline and attempts rebound in the last few sessions But oscillators suggest fading positive momentum Meta’s (Facebook) stock has been in a steep uptrend since it bottomed out in October 2022, while defying the broader market pullback since late summer. In the near-term, the price has been showing some weakness after hitting a fresh 2023 high, but near-term risks remain tilted to the upside.
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Market Comment – Better-than-expected US PMIs help the dollar rebound

PMIs suggest the US economy entered Q4 on solid footing The divergence between US/Eurozone outlooks weighs on euro/dollar Aussie rallies on stickier inflation, yen pinned near 150-per-dollar mark Wall Street pays attention to corporate earnings Euro/dollar slides from near key resistance on PMI data Although the 10-year US Treasury yield held steady comfortably below the psychological zone of 5%, the US dollar was able to stage a comeback against most of its major counterpar
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