US500

Investors are turning their attention to US earnings with 29% of the S&P 500 companies set to report their results this week. Tonight, we will hear from two of the “Magnificent Seven” tech stocks, Alphabet and Tesla, which could impact the S&P 500 forecast.

At the start of a new quarter, seasonality and holiday trade create the type of environment where US stock indices could easily add to recent gains. But with signs of fatigue creeping in after such a strong rally, are we due a pullback?

Stocks have not responded in the usual way of cheering on weaker-than-expected data. The questions, are we finally headed for a long overdue correction now? The S&P 500 outlook is not bearish yet from a technical viewpoint, but the potential is there for that to change in the coming days.

Concerns over prolonged high interest rates have started to undermine stocks a little, with risk appetite waning amid a lack of major fresh bullish catalysts ahead of Friday’s publication of core PCE price index. A potential close below 5250 today could turn the S&P 500 outlook bearish in the short-term perspective.

The short-term S&P 500 outlook could turn bearish if we see some downside follow-through below Thursday’s range when it formed a rather large outside candle after the fresh breakout to a new all-time high was met with strong selling, despite Nvidia’s strong showing.

S&P 500 analysis: Investors interpret Fed as slightly less hawkish than expected, but macro concerns remain. Attention turns to Apple, expected yo report a 10% decline in iPhone sales, before Friday's release of NFP and ISM services PMI.

It was a come back type of week for stocks, even with another hot inflation report. But next week brings the Fed and markets are still holding on to hopes for 2024 rate cuts.

The S&P 500 extends losses to third week amid raised geopolitical risks and rising bond yields. Concerns over the escalation of the situation in the Middle East is at the forefront of investors’ minds. The situation remains volatile with Israel seeking revenge for Iran’s retaliatory attacks on Saturday.

Investors are growing increasingly confident in their view that the Fed’s tightening cycle will end this quarter, before it starts an easing cycle in the third quarter.

Santa rally, what Santa rally?

Perhaps the markets were not expecting the Fed Chair to explicitly imply that the FOMC will indeed hike by 50bps in December

Bearish trend persist for indices and metals as investors watch yields continue to rise following a flurry of central bank action this week.

Wall Street rallied yesterday on the back of weak employment data, as investors jumped onto the theme that the Fed may have reached ‘peak hawkishness’.

We have seen similar moves fade in this bear trend…

With Omicron fears already ‘so last week’, equity markets performed a strong bounce – just in time for Santa’s rally which generally takes hold in the second half of December.

US equities were on track for a new record until potentially hawkish comments from Jerome Powell stopped the party. Today we look at intraday levels for the S&P E-mini futures contract.