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Index Update

On Wednesday, the Dow jumped 0.71%, its best in two weeks, while the S&P 500 and Nasdaq rose 0.39% and 0.19%, respectively, boosted by Nvidia’s 5.2% surge. Investors shrugged off tariff concerns, focusing on earnings and economic data. Attention now shifts to Amazon’s earnings and jobless claims, while semiconductor stocks and Ford declined post-market.

Market Movers

On Wednesday, the top gainers were Mercury Systems Inc (+23.54%), followed by           Aviat Networks, Inc. (+19.22%). On the contrary, EyePoint Pharmaceuticals, Inc. (-13.12%) and  Intapp, Inc. (-11.58%) declined the most the same day.

Commodities Update

Brent crude oil futures rose to about $74.8 per barrel on Thursday, attempting a rebound after a 2% drop in the prior session. The increase followed Saudi Arabia’s decision to raise prices for March deliveries to Asia, driven by growing demand from China and India, along with disruptions to Russian supply due to US sanctions. Supply risks remained as former President Trump’s renewed push to block Iran’s oil exports threatened to remove 1.5 million barrels per day from the market. However, prices faced downward pressure after the EIA reported the largest surge in US crude inventories in nearly a year, exceeding market expectations and API data. Additionally, US-China trade tensions persisted, with China imposing tariffs on American coal, LNG, and crude oil, fueling concerns over weakened global demand.

Macro Update

The 10-year US Treasury yield held at 4.43% on Thursday, its lowest since mid-December, as traders assessed monetary policy. Treasury Secretary Scott Bessent emphasized yield management over Fed rates and denied pressure on the Fed to cut rates. The Fed kept rates steady, with markets expecting two cuts in 2025, while the Treasury maintained auction sizes through April.

Futures Update

US stock futures inched up on Thursday after gaining for a second straight session. On February 6th, Bitcoin traded at 98,874, rising 2.37% from the previous session. It gained 1.96% over the past four weeks and surged 123.75% over the last year.

On Wednesday, stocks initially declined but staged a strong recovery, propelling the major averages into positive territory. By the end of trading, these averages had also hit new highs for the day. Specifically, the Dow Jones surged 317.24 points (0.7%) to 44,873.28, while the S&P 500 rose 23.58 points (0.39%) to 6,061.47 and the Nasdaq gained 38.31 points (0.2%) to 19,692.33. From a technical standpoint, the S&P 500 faced resistance at critical levels, resulting in a slight downward trend and increasing the likelihood of a short-term decline. The Relative Strength Index (RSI) is currently around the midpoint, indicating the potential for a pullback. Market analysts are closely monitoring important price levels, with $6,100 identified as a possible resistance level and $5,950 serving as support.

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