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Index Update

Tech stocks led a strong rebound on Tuesday, with the Nasdaq jumping 1.6% as Nvidia surged 8.8% after recovering from a major loss. Broadcom & Oracle also gained, while Apple & Microsoft advanced ahead of earnings. The S&P 500 rose 0.9%. Investors look ahead to the Fed's rate decision tomorrow.

Market Movers

Apple (+3.7%) & Microsoft (+2.9%) led the charge higher ahead of their earnings releases, boosting tech sector sentiment. Meanwhile, Royal Caribbean soared 11.9% on strong profit forecasts, showing investor confidence in its future growth. On the flip side, General Motors fell 8.9% amid earnings concerns and looming worries over potential U.S. tariffs on imported chips, pharmaceuticals, and steel. The mixed performance highlights the market's cautious optimism as the Fed’s rate decision looms tomorrow.

 

Macro Update

The US 10-year Treasury yield stabilized around 4.52% on Wednesday as traders await the Fed's decision, with rates expected to stay unchanged despite Trump’s calls for cuts. All eyes are on Fed Chair Powell’s remarks & the inflation outlook, ahead of Friday’s PCE report. Treasury yields faced pressure earlier this week amid concerns over AI competition & escalating tariff threats as the Feb 1 deadline approaches.

Commodities Update

Gold prices held around $2,760/oz on Wednesday, driven by safe-haven demand amid US tariff uncertainty. Trump's plans to impose tariffs on computer chips, pharmaceuticals, & steel sparked concerns, with additional tariffs on Canada, Mexico, & China under consideration. Focus now shifts to the Fed’s policy meeting, where rates are expected to remain unchanged. Meanwhile, silver stayed steady at $30.40/oz, as traders weighed tariff threats and reduced demand from China’s solar panel sector.

US Futures Update

US stock futures rose Wednesday as investors brace for the Fed's policy decision, with expectations it will hold rates steady. Market focus shifts to Fed Chair Jerome Powell's comments on future rate cuts after Trump urged the Fed to lower borrowing costs. Tuesday’s gains: S&P 500 +0.92%, Nasdaq +2.03%, fueled by a tech rebound. Nvidia surged 8.9%, recovering from a huge loss. Eyes now on earnings reports from Tesla, Meta, & Microsoft after the bell.

After seeing considerable weakness in the previous session, stocks showed a strong move back to the upside during trading on Tuesday. The tech-heavy Nasdaq led the way higher after posting a particularly steep loss on Monday. The Nasdaq surged 391.75 points or 2.0 percent to 19,733.59, partly offsetting the 3.1 percent plunge seen during yesterday's session. The S&P 500 also jumped 55.42 points or 0.92 percent to 6,067.71, while the narrower Dow rose 136.77 points or 0.3 percent to 44,850.35. Technical analysis suggests that the S&P 500 may experience near-term consolidation as it faces resistance at key levels. The Relative Strength Index (RSI) has also reversed from higher levels, indicating a negative bias. Market observers are monitoring key levels, with resistance expected at $6,110 and support at $5,955.

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