FXTM information and reviews
IronFX information and reviews
Libertex information and reviews
FXCC information and reviews
Markets.com information and reviews
FxPro information and reviews
47 085.73

Can the stock market climb some more before January ends?

27 January 2021

The S&P 500 is one of the main benchmarks used to measure the overall performance of the US stock market. It has been treading water around the 3850 mark since 20th January, as investors await clearer signs about whether to push stocks higher or lower.

To be clear, this blue-chip index has climbed 2.5 percent already so far in 2021. At the time of writing, the futures contracts for the index are edging higher, which suggests that the S&P 500 is set to open flat when US markets begins regular trading for its Wednesday session.

Investors could get a big, F.A.T. signal today.

Facebook, Apple, and Tesla are all set to announce their latest quarterly earnings respectively after US markets close on Wednesday. Note that the total value (market capitalization) of these 3 companies combined exceeds $4 trillion, which is nearly 12% of the S&P 500’s total market cap of $34 trillion.

Investors have been flocking to these stocks of late in anticipation of some stellar financial results from the final three months of 2020. The buying spree has led to some fascinating stats on these stocks:




And just because investors have already been pricing in some of the expected earnings, it does not mean the stock does not have any more room to climb in the immediate term. Take Microsoft for example. Even though investors had been expecting some excellent numbers from its Q4 performance (which was just announced a few hours ago after US markets closed on Tuesday), the software giant’s stocks still popped by as much as 6.5 percent in late trading, even after closing the regular Tuesday session at a new record high!

Of course, it helped that Microsoft’s results came in better than expected.

Hence, Facebook, Apple, and Tesla similarly may require such positive surprises to help push the S&P 500 higher. That also assumes that non-tech stocks on the S&P 500 don’t go too far in the opposite direction today. And then, there’s the Federal Reserve. The US central bank is in the midst of a two-day meeting which began yesterday, and the Federal Open Market Committee is due to announce its policy decision later today. Investors will be paying very close attention to the words of the central bank chief, Jerome Powell.

The Fed chair has to convey to the markets that policymakers will be very careful about when they unwind some of its support for financial markets.

For reference, besides cutting benchmark interest rates to near-zero, the Fed has been buying about $120 billion worth of bonds per month to help the US economy amidst the pandemic. As the US economy recovers, due in part to the vaccine’s rollout, the central bank is bound to eventually pull back on some of that bond-buying. Global investors are very eager to find out when, and how, the Fed will do so.

One wrong move or a slip of the tongue on Powell’s part could cause a massive jolt to global financial markets, with investors fearing a repeat of the infamous 'taper tantrum' of 2013. As long as the Fed chair does his job right today, and conveys with conviction the central bank’s intentions in a calm and clear manner, US stock markets could see more gains over the coming sessions.



Gold and Silver looking into the abyss
Gold and Silver looking into the abyss

Strong US data revived bets on an imminent QE rollback from the Fed, supporting the dollar and causing bond yields to rise. The news triggered a more than 2% plunge in gold prices...

17 Sep 2021

Stocks pick up some bid after textbook SP 500 bounce
Stocks pick up some bid after textbook SP 500 bounce

European stock markets were modestly higher on Thursday after a rebound in the US and another dip for Asian equities overnight. Hong Kong down 1.7%...

16 Sep 2021

Stock Futures Trade Lower, Investors Worry About Fed Tapering
Stock Futures Trade Lower, Investors Worry About Fed Tapering

US and European futures are trading lower today, following a retracement in US indices. The Dow Jones Industrial Average fell nearly 290 points, wiping out gains...

15 Sep 2021

Futures in the United States and Europe are up today
Futures in the United States and Europe are up today

Futures in the United States and Europe are up today after the Dow managed to gain nearly 260 points and break its five-day losing streak. Although investors...

14 Sep 2021

Forex and Cryptocurrency Forecast for September 13-17, 2021
Forex and Cryptocurrency Forecast for September 13-17, 2021

The ECB meeting on Thursday 09 September went off as expected with no surprises. The interest rate remained unchanged at 0%. The European regulator...

13 Sep 2021

Could rising equity volatility into options expiry spill into other markets?
Could rising equity volatility into options expiry spill into other markets?

While we saw some genuine strength in the Nikkei 225 and to a lesser extent Chinese/HK markets last week, we’ve seen signs that US equity indices are at risk of talking...

13 Sep 2021

Editors' Picks

OctaFX information and reviews
HotForex information and reviews
XM information and reviews
FXCM information and reviews
Vantage FX information and reviews
Vantage FX
Moneta Markets information and reviews
Moneta Markets

© 2006-2021 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.