Trump-Era Tariffs Canceled: A US court struck down the “Liberation Day” tariffs, effective immediately. This boosts sentiment for industrials, consumer goods, and global supply chain-reliant stocks. The government is appealing the ruling.
US Dollar Strengthens: The DXY is back above 100, up 1.8% from last week’s lows. A strong dollar helps importers but may pressure exporters and commodities.
Fed Rate Cut Expectations Decline: Markets now price 42 bps of rate cuts in 2024, down from 50 bps. This supports financials (e.g. banks), but challenges rate-sensitive sectors like real estate and small caps.
Mixed Eurozone Data: Positive Italian confidence figures offset weak German and French job numbers, offering slight global risk support. Limited direct impact on US stocks.
Fed Flags Stagflation Risk: Minutes show the Fed is worried about stagflation. This could weaken confidence in growth stocks and favor defensive sectors.
Today’s US Data Watch:
Q1 GDP 2nd estimate (expected -0.3%)
Weekly jobless claims
Fed speakers
All ahead of Friday’s key PCE inflation data
Market Outlook
Positive: Trade relief, resilient dollar, stronger bank outlook
Caution: Slowing growth, inflation worries, fewer rate cuts
Focus Areas: Industrials, financials, tech (watch for pullbacks); avoid rate-sensitive sectors short term
Key Support and Resistance Levels
Resistance Level 1: 6010
Resistance Level 2: 6070
Resistance Level 3: 6160
Support Level 1: 5780
Support Level 2: 5740
Support Level 3: 5700
This communication is for informational purposes only and should not be viewed as any form of recommendation as to a particular course of action or as investment advice. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Opinions, estimates and assumptions expressed herein are made as of the date of this communication and are subject to change without notice. This communication has been prepared based upon information, including market prices, data and other information, believed to be reliable; however, Trade Nation does not warrant its completeness or accuracy. All market prices and market data contained in or attached to this communication are indicative and subject to change without notice.
US Dollar Strengthens: The DXY is back above 100, up 1.8% from last week’s lows. A strong dollar helps importers but may pressure exporters and commodities.
Fed Rate Cut Expectations Decline: Markets now price 42 bps of rate cuts in 2024, down from 50 bps. This supports financials (e.g. banks), but challenges rate-sensitive sectors like real estate and small caps.
Mixed Eurozone Data: Positive Italian confidence figures offset weak German and French job numbers, offering slight global risk support. Limited direct impact on US stocks.
Fed Flags Stagflation Risk: Minutes show the Fed is worried about stagflation. This could weaken confidence in growth stocks and favor defensive sectors.
Today’s US Data Watch:
Q1 GDP 2nd estimate (expected -0.3%)
Weekly jobless claims
Fed speakers
All ahead of Friday’s key PCE inflation data
Market Outlook
Positive: Trade relief, resilient dollar, stronger bank outlook
Caution: Slowing growth, inflation worries, fewer rate cuts
Focus Areas: Industrials, financials, tech (watch for pullbacks); avoid rate-sensitive sectors short term
Key Support and Resistance Levels
Resistance Level 1: 6010
Resistance Level 2: 6070
Resistance Level 3: 6160
Support Level 1: 5780
Support Level 2: 5740
Support Level 3: 5700
This communication is for informational purposes only and should not be viewed as any form of recommendation as to a particular course of action or as investment advice. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Opinions, estimates and assumptions expressed herein are made as of the date of this communication and are subject to change without notice. This communication has been prepared based upon information, including market prices, data and other information, believed to be reliable; however, Trade Nation does not warrant its completeness or accuracy. All market prices and market data contained in or attached to this communication are indicative and subject to change without notice.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.