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Index Update & Market Movers - US stocks showed mixed results on Monday: the Dow soared over 300 points, while the Nasdaq slid 0.6% as tech stocks like Nvidia and Palantir extended losses. Rising bond yields and a stronger-than-expected jobs report added pressure, dimming hopes for near-term Fed rate cuts. All eyes are on the upcoming CPI report and earnings season for more direction

Commodities Update

Crude oil prices dropped to $80.4/bbl after a bull run, amid profit-taking and fears of tighter global supply due to U.S. sanctions on Russia. Meanwhile, gold hovers around $2,670/oz as investors seek a hedge against inflation amid trade war concerns. Silver dipped below $30/oz after stronger US jobs data raised doubts about Fed rate cuts, though its industrial demand remains strong. Markets await key US economic data this week for further direction.

Macro Update

The US 10-year Treasury yield held steady at 4.76% as investors await key inflation reports this week, with December PPI data out today and the consumer inflation report tomorrow. Yields surged to their highest since October 2023 amid resilient economic data, leading to reduced expectations for Fed rate cuts. Meanwhile, small business optimism hit its highest since 2018, reflecting confidence in pro-business policies under the new administration.

Futures Update

US stock futures edged up as investors prepare for key inflation reports and the start of earnings season. The December producer inflation data drops today, followed by the consumer report tomorrow. Major banks like JPMorgan and Citigroup are also set to release earnings. The Dow and S&P 500 saw gains while tech stocks faced pressure from rising bond yields.


Stock markets experienced a significant drop early on Monday, but managed to recover as the trading day progressed. The S&P 500 climbed back from its earlier lows, closing in positive territory, while the Nasdaq remained in negative territory. The S&P 500 increased by 9.18 points, or 0.16%, to finish at 5,836.21, whereas the Nasdaq fell by 73.53 points, or 0.4%, reaching a one-month closing low of 19,088.10. From a technical perspective, the S&P 500 is approaching a possible downside breakout from its rising channel pattern, which may result in short-term market volatility. Additionally, the 14-period Relative Strength Index (RSI) is below its midpoint, suggesting a bearish outlook. Key levels to watch in the upcoming days include a resistance level at 5,920 and a support level at 5,770.

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