US Open: Bearish momentum extends!

• Wall Street opens lower as risk of default by major banks increases

• Durable Goods new data suggest stronger US economy

• First Republic Bank (FRC.US) skins another -13%

On Wednesday morning, Wall Street is expected to open lower. Major indexes behave volatile. Investors on the one hand received strong results from tech companies like Alphabet or Microsoft, but on the other hand, concerns from the banking sector are growing.

Concerns arise mainly due to the First Republic Bank (FRC.US). On Tuesday, the bank's stock price fell dramatically by 49% and reached an all-time low as a significant amount of deposits was withdrawn. On the Wednesday trading session, the stock price is falling by an additional 21%. However, panic sell-off did not escalate to other banks in the sector today indicating that investors are not overly concerned about the possibility of a wider contagion, at least so far.

In today's macro calendar, the only and most important event was the publication of Durable Goods Orders for the US. Generally, data came much better than expected with a 3.23% increase MoM (0.8% forecasts) largely driven by a surge in new contracts for passenger planes which rose by 78%. However, business investment fell for the fourth time in the past five months, indicating concerns over future growth. Durable Goods Orders Ex-Transportation, orders rose a mere 0.3% (expected -0.2%).

The US500 index is currently trading at 4100 points, which is right at a significant support level. Recently, the price has dropped significantly after testing the upper resistance level between 4172-4200 points. This suggests that the market sentiment is turning bearish and the upcoming days will be crucial to determine which direction the price will take.

Currently, the price is struggling to keep 4100 points, which could indicate a further drop in the near future. Traders should closely monitor the support level at 4100 points, as a break below this level could trigger additional selling pressure. On the other hand, if the price manages to hold the support level at 4100 points, it could indicate a potential reversal and rebound.

• Alphabet (GOOGL.US) shares are up 1.3%, after the Google parent reported first-quarter results that beat expectations

• Microsoft (MSFT.US) is up 6.7% after the company easily beat Wall Street's targets for its fiscal third quarter thanks to a strong showing by its cloud computing businesses. The company also guided higher for the current period

• First Republic Bank (FRC.US) sinks as much as 11%, extending the stock’s 49% slide from Tuesday that had taken it to a record low

• Enphase Energy (ENPH.US) plummets as much as 16%, on track for its worst day since June 2020. Analysts cut their price targets on the solar equipment maker after second-quarter revenue guidance missed expectations due to weakness in its US market and higher interest rates. Brokers say that Enphase’s first quarter performance was overall strong, and were positive regarding its prospects for the longer-term