Market Update: S&P 500 Reacts to Jobless Claims and Fed Minutes
The S&P 500 closed up 40 basis points yesterday, showing little reaction to various market indicators. The 1-month implied correlation index, VIX, VVIX, and S&P 500 all rose on the same day, which is unusual. The BLS reported 818,000 fewer jobs created than originally estimated, initially pushing yields lower. The Fed hinted at possible rate cuts in September, leading to a steepening yield curve.
Jobless Claims Impact on Markets
Today’s jobless claims data could affect the steepening yield curve trend. Recent reactions to data have been strong, with a possible cup and handle pattern forming. The USD/CAD is seeking a bottom at 1.36, which could indicate a top for the S&P 500.
Nvidia’s Earnings and Market Impact
Nvidia’s earnings next week are highly anticipated, with a key resistance level at $130. Implied volatility is high, suggesting inflated call options. Market makers may be over-hedged against the stock moving higher post-earnings.