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Stocks Fighting On
US stocks are continuing to push higher on Tuesday as the recovery off recent lows continues. The correction in the Nasdaq has seen the market shedding around 9% from YTD highs. A shift in expectations regarding the Fed has been the major driver behind the move lower. With traders eyeing fresh potential for a further hike this year, markets quickly unwound as USD traded higher. However, that catalyst looks to have dried up now and, despite higher US yields, stocks are pushing higher.
AI Hype
One aspect here is the support offered from better earnings results recently. With a slew of big tech names seen beating estimates, bullish sentiment has helped drive stocks higher. Looking ahead this week, the big focus will be on NVIDIA’s earnings report due tomorrow. Given the bullishness around AI performance, the company is widely expected to post stellar results which should help catapult stocks higher over the back end of the week ahead of Powell’s speech in Jackson Hole on Friday.
Technical Views
Nasdaq
The sell off in the Nasdaq has seen the index breaking below the 15177.5 level. Despite the correction, the bull channel remains intact and, while above the 14288.2 level and the bull channel lows, the focus is on a further push higher and a fresh challenge of YTD highs.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.