U.S. indices open Monday's session with losses. Concerns over the trade war have not stabilized over the weekend, and the scenario of no significant deals and further escalation between Washington and Beijing seems to be the base case. Today, no major economic data from the U.S. will be released, and earnings reports are coming from smaller companies.
- In the Big Tech sector, declines dominate, with Nvidia shares down more than 3.5% and Tesla dropping 4% ahead of tomorrow’s earnings report.
- Netflix (NFLX.US) shares are up more than 3.7% at the U.S. market open, while Hertz shares are down over 12% after recent gains, driven by the exposure of company stakes by Pershing Square and Bill Ackman.
- On the U.S. stock market, losses dominate, with United Health Group (UNH.US) down an additional 2% after a 22% drop on Friday. The US30 index loses over 1%.
- Crude oil is down more than 2%, and the U.S. dollar index falls to 3-year lows. Investors are concerned about the potential replacement of Jerome Powell by a candidate nominated by Donald Trump, who expressed his desire to replace the Fed chair on Friday.
The technology sector, as well as oil and gas, are the weakest sectors on Wall Street today. Declines also dominate in the capital markets sector, where the drop in stock prices of KKR and Blackstone weighs heavily.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Source: xStation5
US500 Chart (H1 interval)
The US500 rebound was stopped at 23.6 Fibo retracement of the upward wave started in 2022. As for now, the major support is 4800 - 5000 points level.
Source: xStation5
Nvidia (D1 interval)
Nvidia shares have given back a significant portion of their recent gains and are currently trading about 10% above the low from the first half of April. The stock price is moving in the downward price channel, almost 10% below EMA200, signalling a downtrend.
Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
