US OPEN: Wall Street continues rebound after ECB signaled end of hiking cycle

• The ECB raised interest rates but signaled the end of the hiking cycle, which supports the rebound in the stock market
• The end of increases from the ECB may mean a pause from the Fed
• Strong data from the US economy: claims at 220,000, retail sales growing by 0.6% m/m (expected: 0.2% m/m), PPI rebounds to 1.6% y/y ( expected 1.2% y/y; previously: 0.8% y/y)

From the start of the day, we can notice a positive sentiment on the market. Futures are gaining and cash indices started also on positive footing on Wall Street. The increases are supported by the ECB decision that suggests that the hiking cycle is over and it may also mean that the Fed will decide to keep interest rates unchanged next week. On the other hand, we got strong data from the US suggesting consumer resilience, which is good news for the stock market, but at the same time provides grounds for another rate increase.

A look at the US500

US500 slightly reduces gains after the opening of the cash market. It should be noted that today we had a rollover of futures contracts, hence the price gap of approximately 1%. However, the creation of this gap may allow the market to break above the consolidation zone around 4500-4550 points. A break of the 4550 level could lead to an attempted test of 4600 points. However, if a bearish candlestick formation is established today, the rollover gap may be closed and a drop to 4,470 points may occur.

Source: xStation5

Company News:

• AMC (AMC.US), a company that is perceived as a "meme-stock", is gaining 8% today, which is related to the sale of 40 million shares by the company for the amount of USD 325.5 million.
• Delta Air (DAL.US) raises Q3 expectations as transatlantic travel increases. Delta indicates that it expects revenue growth in the upper guidance range of 11-14% for Q3. On the other hand, the company is cutting operating margin and profit expectations due to increases in oil prices. The company's shares gained approximately 3% at the opening of the market.
• Etsy (ETSY.US) gained nearly 5% at the opening after Wolfe Research upgraded its recommendation to "outperform" from "peer perform"
• Arm, a British semiconductor and software design company is going public today at offering price of $51, which gives a valuation of $54.4 billion. This is Rivian's biggest Wall Street debut of 2021. Arm's clients include Apple, Nvidia and Alphabet. Chip and intelligence companies are gaining today. Nvidia is gaining 0.5%, while AMD is higher by 0.2%