US Open: Indices struggle for direction as Israel conflict weighs on markets

• Indices open with slight losses
• Dollar consolidates after dynamic gains
• Bond yields behave similarly to the dollar

On the last day of this week, indices on Wall Street open with minor losses. In the first part of the day, during the cash session in the Asia-Pacific region, financial markets were again nervous due to Israel's retaliatory attack following the recent rocket attacks from Iran. At that time, many instruments exhibited high volatility. Both the dollar and bond yields saw strong increases, while U.S. index futures experienced significant drops. However, by the time the cash session opened in the US, most instruments had already recovered some of their losses.

USIDX

On the dollar index, we observed a dynamic upward movement around 2:00 pm GMT. However, as of now, all of that movement has been erased. This may indicate that the issue of the conflict in the Middle East is diminishing in significance in the eyes of the markets, and the recent upward momentum is slowly exhausting.

Źródło: xStation 5

US500

On the main index of American companies, US500, we see a similar large downward movement below 5000 points, which was later pulled back. The close of today's session on the daily and weekly intervals will be crucial. If the indices manage to maintain around current levels or even finish the session positively, it could suggest the potential for a trend reversal. In the medium term, it is crucial for bulls to defend the 4960-5000 points range.

Źródło: xStation 5

Company News:

Paramount Global (PARA.US) gains as much as 9.00% amid reports that Sony Pictures Entertainment is in discussions for a potential acquisition of the studio. Sony is reportedly collaborating with Apollo Global Management on this bid, according to The New York Times.

Source: xStation 5

Shopify (SHOP.US) gains 2.00% after Morgan Stanley upgraded the stock to Overweight from Equal-weight. The upgrade was based on Shopify’s potential to sustain over 20% compound annual growth rate through FY30, successful expansion into larger markets, and growth in international operations.

American Express (AXP.US) rose over 2.70% following the announcement of first-quarter results that exceeded market expectations. The company also reaffirmed its full-year 2024 earnings forecast of $12.65–$13.15 per share and expects revenue growth of 9%–11%.

Netflix (NFLX.US) dips almost 7.00% despite exceeding Q1 expectations, as the company announced it would stop reporting quarterly subscriber numbers within a year. This follows a previous decision to stop forecasting subscriber growth, shifting its focus to diversifying revenue streams and enhancing operating margins.