E-Mini S&P 500
U.S. stocks slumped on Tuesday in a volatile trading session as investors weighed what strong economic data and rising rates mean for the Federal Reserve’s aggressive tightening campaign.
The S&P 500 slipped 0.41% to 3,908.19.
At the same time, bond yields surged, adding to the rout in stocks. The yield on the U.S. 10-year Treasury jumped as much as 0.162 percentage point to 3.353% at one point in the day. Yields move inversely to prices.
The moves came after August ISM data Tuesday morning was stronger than expected, coming in at 56.9 versus expectations of 55.5. The report follows Friday’s jobs release, which also beat Wall Street’s expectations, showing a more solid U.S. economy than anticipated.
Both reports come ahead of the Federal Reserve’s September meeting, where they’re expected to raise interest rates again. Better-than-expected economic data may mean that the central bank continues to act aggressively in hiking interest rates.
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Plan A : Short if market failed to support above 3905. Targets are 3892 and 3880.
Plan B : Long if market supported above 3905. Targets are 3919 and 3932.
E-Mini Nasdaq
Stock futures were slightly lower Wednesday morning after the major averages added to weeks of losses amid a jump in bond yields.
The Nasdaq Composite slid 0.74% to 11,544.91, notching its seventh day of losses, its longest since 2016.
The major averages closed out their third negative week in a row. The Nasdaq Composite posted its first six-day losing streak since 2019, ending the session 1.3% lower, while the Dow erased a 370-point gain on Friday to close about 1.1% lower. The S&P shed 1.1% to its lowest close since July.
In the holiday-shortened week, investors are looking ahead to speeches from Federal Reserve presidents and a fresh rate hike decision from the European Central Bank due out later this week.
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Plan A : Short if market failed to support above 12008. Targets are 11973 and 12945.
Plan B : Long if market supported firm above 12008. Targets are 12048 and 12069.