However, if sentiment favors the bears as more economic data is released, the level to watch on the downside is 3723. If the bulls are able to maintain control, the next resistance level is located near 3845 as seen in the daily chart. TSLA shares fell 3.46% TECHNICAL OUTLOOKįrom a technical perspective, after the S&P 500 hit a fresh year low on Friday, the bulls were able to break above the 3660 level in the last two sessions, but are now finding resistance at 3805-3807, where there is confluence with the 38.2% Fibonacci level. After yesterday’s change of heart, Tesla investors became fearful that the decision will weigh on the stock. Earlier this year, Musk sold more than $14 billion worth of Tesla shares to fund the deal before announcing that he would walk away from the buyout. Tesla shares weighed negatively on the Nasdaq after Elon Musk announced he will go ahead with the purchase of Twitter at the original price of $54.20. At the open, the index was sharply lower but was able to erase some of the losses, ending the day down 0.08%. Companies such as Schlumberger, Halliburton and Exxon Mobil advanced.įocusing on the Nasdaq 100, the tech benchmark also dropped. administration’s efforts to persuade against supply cuts to avoid inflaming inflation. OPEC+ members decided to cut production by 2M bpd based on quotas and announced that the next meeting will be in December, around the time the EU price cap on Russian oil comes into effect.
Crude oil prices jumped more than 1.5%, taking WTI futures to $87.89 at the time of writing. While eight of the eleven sectors of the S&P fell, the energy component led some gains. If anything, it confirms the resiliency of the economy, which is consistent with recent rhetoric from the San Francisco Fed president that suggests that the aggressive tightening cycle will continue.Īt the closing bell, the Dow and the S&P 500 lost 0.14% and 0.20%, respectively. Today’s data does not argue for a slower pace of monetary policy tightening. economy, as the services sector accounts for more 60% of GDP.
The ISM services PMI is one of the best forward-looking metrics for the U.S. The US dollar tracked the rise in yields after having suffered its biggest drop in more than two years yesterday, with positive news from the economic calendar pushing these two assets higher.Ī better-than-expected ADP private payroll figure and slightly higher-than-anticipated ISM Services PMI had investors pondering whether the Fed will pivot soon. The two-year paper was up 4 basis points to 4.14%, while the 10-year note jumped 13 basis points to 3.75%, after briefly dipping below 3.6% earlier in the week. Treasury yields rose across the curve today. may not currently be in recession, suggesting that the FOMC is not about to pivot just yet, dampening demand for risk assets while bolstering the US dollar and bond rates. The fundamentals of the economy show that the U.S. Most Read: S&P 500, Nasdaq, Dow Jones Forecast: Bear Bounce or Fed Pivot?Īfter a strong two-day rally in US equities, the largest since 2020, driven by rebalancing flows associated with the end of Q3 and a surprisingly lower than expected JOLTS openings report, today the S&P 500 opened with a gap to the downside but managed to trim losses in the last hour of trading.
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