Yesterday, the S&P 500 fell by 0.30%, reflecting worries about the economy that overshadowed previous bullish sentiments. On the other hand, the Nasdaq edged up slightly by 0.25%, but futures for both indices suggest a cautious start to today’s session with key economic reports on the horizon.
Private payrolls increased by 99,000 in August, missing the forecast of 144,000 and marking the weakest performance since January 2021. This, combined with a slight decrease in consumer confidence, has raised concerns about the economy’s health and fueled speculation of more aggressive Fed rate cuts. Currently, the market indicates a 42% chance of a 50bp rate cut.
Looking at the technical positions of the S&P 500 and Nasdaq, we see that the Nasdaq is facing strong resistance around the 18,000-point mark, while the S&P 500 shows signs of weakness after a downward correction from setting new historical highs.
The DAX, on the other hand, has reached new historical highs but is currently undergoing a corrective phase. If it falls below the local support level of 18,500 points, it could lead to further declines targeting around 18,000 points.
Analysis: The recent market movements reflect concerns over the economy and potential Fed rate cuts. Investors should closely monitor key economic reports and technical levels of major indices like the S&P 500, Nasdaq, and DAX to make informed investment decisions and navigate the current market conditions.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and analysis before making any investment decisions.