Image Souce: Krish Capital Pty Ltd

Commodities Update

Brent crude oil rose above $72, recovering slightly from two-week lows due to short-term supply tightness. However, OPEC’s reduced 2024 demand forecast and weak data from China continue to weigh on sentiment. Gold surged above $2,600 as traders await key US economic data but remains near a 2-month low on expectations of a delayed Fed rate cut. Copper steadied at $4.11/pound amid ongoing demand concerns in China & a strengthening US dollar.

Macro Update

US mortgage applications rose 0.5% for the week ending Nov 8, but still reflect a 35% drop from October. Rising rates, fueled by strong economic data & Trump’s victory, weigh on demand. Meanwhile, markets await key inflation data today, which could impact the Fed's next move.

Futures Update

US stock futures dip ahead of October CPI data, which could sway Fed rate cut expectations. Tuesday saw the Dow down 0.86%, S&P 500 -0.29%, and Nasdaq -0.09%. Most sectors posted losses, led by materials, healthcare, & real estate. In after-hours, Spotify +6.6%, Cava +16.5%, while Skyworks dropped 3.3%.

Index Update

US stocks paused Tuesday after the post-election rally. S&P 500 -0.3%, Dow -382 pts, Nasdaq -0.1%.

Market Movers

Tesla dropped 6.1%, Trump Media down 8.8%, while Nvidia, Microsoft, and Alphabet saw gains. Materials, real estate, and utilities led losses. Investors cautious ahead of CPI data and rising Treasury yields (4.43%).

Following last week's strong upward movement in response to the recent elections, stocks experienced a pullback during Tuesday's trading session. The major indices showed fluctuations throughout the day before ultimately closing in negative territory. The S&P 500 fell by 17.36 points, or 0.29%, to finish at 5,984, while the tech-heavy Nasdaq slipped 17.36 points, or 0.1%, closing at 19,281.40. From a technical perspective, the S&P 500 is currently hovering near the upper band of a rising channel, suggesting that a period of consolidation might be on the horizon. Additionally, the rising 14-period Relative Strength Index (RSI) is approaching overbought levels. Key levels to monitor include resistance at 6,065 and support at 5,900.

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