Image Souce: Krish Capital Pty Ltd

Index Update

US stocks closed Monday in the green! The S&P 500 and Nasdaq rose 0.3%, while the Dow added 274 points. Relief spread as Israeli airstrikes on Iran avoided key facilities. Key economic releases, including GDP growth and PCE inflation, are on the horizon as we approach the presidential election and Fed decisions. The tech sector led the way, while energy shares took a hit.

Market Movers

Nine of 11 S&P sectors ended higher, led by financials, materials, and utilities, as traders found relief from recent geopolitical tensions . Investors are now gearing up for a busy earnings week with five "Magnificent Seven" giants set to report: Apple (+0.9%), Meta (+0.9%), Amazon (+0.3%), Alphabet (+0.9%), and Microsoft (-0.4%).

Macro Update

The dollar index held steady around 104.3 on Tuesday after a volatile session, as investors await key US economic data. Today’s job openings and labor turnover figures will be crucial for gauging the labor market's strength. With GDP growth, PCE inflation, and nonfarm payrolls also on the horizon, the dollar remains near three-month highs. Markets anticipate a modest 25 bps Fed cut in November, following September's 50 bps reduction. Plus, rising bets on a Trump win in the Nov. 5 election are seen as inflationary, further supporting the dollar.

Commodities Update

Brent crude futures stabilized around $71.4/bbl after a 6% plunge—the largest drop in two years. Easing Middle East tensions and Israeli PM Netanyahu’s openness to a truce are shifting focus back to weak fundamentals and sluggish Chinese demand. Meanwhile, gold surged above $2,750/oz, driven by safe-haven demand amid election uncertainty. Silver also rose toward $34/oz. Traders are awaiting key US economic data this week, with expectations of a modest Fed rate cut

Futures Update

US stock futures were little changed Tuesday as investors prepare for crucial labor market data and earnings reports. In after-hours trading, Ford tumbled 6% after a soft full-year outlook, while VF Corp soared 23% on strong quarterly results. All eyes are on job openings and earnings from tech giants like Apple, Amazon, Meta, Microsoft, and Alphabet this week. Meanwhile, Bitcoin has surged past the $70,000 mark this week for the first time since June! Driven by over $3 billion in inflows to US spot Bitcoin ETFs and ongoing support from potential political shifts, the crypto market is buzzing. With year-to-date inflows now over $25 billion, investors are hedging against global uncertainties.

After experiencing a strong upward movement earlier in the session, stocks retraced throughout the trading day on Monday but ultimately closed mostly higher. The Nasdaq increased by 48.58 points, or 0.3 percent, reaching 18,567.19, while the S&P 500 gained 15.40 points, also up 0.27 percent, to finish at 5,823.51. From a technical analysis standpoint, the S&P 500 seems to be forming a rising wedge pattern, which may raise concerns due to the potential for significant price swings within this upward trend. Additionally, the 14-period RSI indicates a bearish divergence relative to the price movement, suggesting a possibly negative outlook. Traders should monitor crucial price levels, with resistance set at 5,840 and support around 5,700.

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