Yesterday’s lows came soon after the US exchanges reopened for the first time since Friday. Once again, traders rushed in to ‘buy the dip’, repeating a strategy, such as it is, that has proved to be profitable ever since the lows hit in October 2022. This upside momentum continued into this morning with US stock index futures stronger across the board.
In early trade, the S&P was closing in on 6,900, having fallen to 6,775 less than 24 hours ago. Amazon rebounded yesterday, having earlier traded at a 9-month low, marking a 20% loss since the beginning of this month. Investors were spooked when the company revealed the size of its planned investment in AI.
Source: TN Trader
Yesterday, Chicago Fed President Austan Goolsbee said there could be "several more" rate cuts this year, although much would depend on inflation’s trajectory. There’s an update on Core PCE, the Fed’s preferred inflation measure, this Friday, while the minutes of the Fed’s last FOMC meeting in January will be released later this evening.
On the earnings front, today sees updates from Carvana, DoorDash and Booking Holdings. Yesterday, Palo Alto Networks fell 6% after it announced a weak earnings forecast for the current quarter.
US stock indices have regained their upside momentum. But will this prove strong enough to keep buyers engaged, and protracted enough to drive the S&P 500 above key resistance at 7,000?
