FXTM information and reviews
FXTM
95%
OctaFX information and reviews
OctaFX
94%
XM information and reviews
XM
93%
FXCC information and reviews
FXCC
92%
Libertex information and reviews
Libertex
91%
HFM information and reviews
HFM
89%

Several factors drove the price move for US stocks


4 July 2022 Written by Naeem Aslam  AvaTrade Chief Market Analyst Naeem Aslam

The US economy’s most volatile first half of the year is over, and S&P 500 recorded its worst H1 since 1970. Several factors drove the price move for US stocks. Soaring inflation, geopolitical tensions, higher oil prices and a hawkish monetary are undoubtedly the most important ones. Now traders believe that recession is highly likely and global economic growth will likely slow down. This means the second half of the year could be even worse for the US stock market. 

Oil

After dropping the previous session due to OPEC+’s announcement that it will continue to increase oil output in August and investors’ concerns about the global economy’s health, oil prices began to rise in early trade on Friday. After two days of discussions, the producers in the OPEC+ group, including Russia, decided to adhere to their output policy on Thursday. However, starting in September, the producer club refrained from discussing policy.

Traders will remain focused on the supply and demand equation as it is very much driving the price. Investors widely believe that the path of the least resistance is still skewed to the upside as there were plenty of supply issues past August.

Cryptos 

Dutch stock exchange major The first Bitcoin (BTC) exchange-traded fund is being launched by Euronext Amsterdam, a division of the pan-European market Euronext (ETF). The Bitcoin ETF will debut on Euronext Amsterdam next month, according to a London-based Jacobi Asset Management statement on Thursday. Under the symbol BCOIN, the spot Bitcoin ETF will begin trading on the Euronext Amsterdam Exchange.

It is the first time we will see the spot or physically-backed Bitcoin ETF product on the market, and the fund is not permitted to lend, stake, or leverage any of its assets. Remember, the most recent chaos in the market is mainly due to the lending of crypto assets by companies. These companies promised unreal yields to investors, and now more prominent players are being paid cents on the dollar, and the rest are forced into liquidation. Investors purchasing and exchange-traded Bitcoin products will hold the units that hold the Bitcoin for the first time in Europe.

Asian Markets 

The Asian stock market traded lower on the week’s last trading day. The Nikkei index fell by 1.77%. The HSI index decreased by 0.62%, while the KOPSI index declined by 1.48%. The Shanghai index also dropped by 0.19%.

The Dow Jones’ market breadth lost further momentum. 32% of the Dow Jones stocks are trading above their 200-day moving average. The S&P 500 stock breadth also confirmed some loss in its momentum. 34% of the shares traded above their 200-day moving average. 

Dow Jones Futures Today

The Dow Jones futures are trading lower today. In terms of economic data, investors will be looking at the US ISM manufacturing PMI reading, which will be coming out at 14:00 GMT. The forecast is for 54.6, while the previous reading was 56.1. In addition, we also have the Construction Spending Prices number coming out, and the forecast is for 0.3% against the previous number of 0.2%. 

The Dow Jones futures are trading lower, and the index has failed to break above the 50-day SMA on the daily time frame. The fact that the price has rejected the 50-day in less than two weeks tie indicates that prices are likely to move lower, and it is expected that more pain could be ahead of the index. In addition, the Dow Jones index continues to trade below the 100 and 200-day SA on the daily time frame, which further confirms that the path of the least resistance is skewed to the downside. 

 As for the RSI, it indicates that prices are not oversold on the daily time frame. Currently, the RSI is trading at 45. The near-term support is 29,298, while the resistance is 32,146.  

Stock Market Rally

#source

Share: Tweet this or Share on Facebook


Related

China unrest as Covid lockdowns ramp up
China unrest as Covid lockdowns ramp up

Oil prices have dropped to an 11-month low at the start of the week as protests escalate in China in response to the strict zero-COVID restrictions...

28 Nov 2022

Global risk appetite
Global risk appetite

The USDIndex held fractionally lower below 106.00 following a short week and a hit in risk sentiment and stoked uncertainty. USDJPY drifted by 0.80% to 138 in a blow to risk appetite...

28 Nov 2022

The market mood improves after less hawkish Fed minutes
The market mood improves after less hawkish Fed minutes

Oil fell sharply on Wednesday, recording its largest daily drop in two months as the G7 consider capping oil prices at $65-$75 per barrel. Discussions on the price cap...

25 Nov 2022

How Do The Black Friday and Cyber Monday Impact Financial Markets?
How Do The Black Friday and Cyber Monday Impact Financial Markets?

Black Friday and Cyber Monday are two of the most highly anticipated days of the year for consumers, with businesses slashing prices and promoting attractive deals on what is essentially...

24 Nov 2022

Why Is Bitcoin Tanking: Crypto Winter And Future Of The First Cryptocurrency
Why Is Bitcoin Tanking: Crypto Winter And Future Of The First Cryptocurrency

The year 2022 was rich in major shocks and bankruptcies of cryptocurrency projects - after each such event, all assets fall in price simultaneously. The current crisis was no exception...

23 Nov 2022

The supply of soybeans is rising while demand is fragile
The supply of soybeans is rising while demand is fragile

After two straight sessions of falling prices, soybeans prompt-month futures contract traded on the Chicago Board of Trade (CBoT) went up 0.8% on Friday and settled at 14.28 USD per bushel...

22 Nov 2022


Editors' Picks

FXCM information and reviews
FXCM
87%
ActivTrades information and reviews
ActivTrades
86%
RoboForex information and reviews
RoboForex
85%
MultiBank Group information and reviews
MultiBank Group
84%
FxPro information and reviews
FxPro
83%
Vantage information and reviews
Vantage
83%

© 2006-2022 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.