US OPEN: Market hovering near the peaks

The US market open is bringing low volatility and a limited trading range. Buyers are clearly starting to lose momentum to break through the next resistance level, which is understandable given the roughly 12% rise from the local low. Futures prices for the main indices (US500, US100) are moving within a narrow range of about 0.2%.

Earnings season continues, and results from the financial sector are gradually coming in. While most banks and investment firms were able to report revenue and profit above expectations, net interest margins are much weaker in many cases. This may be a temporary slowdown in the market or the beginning of a structural slowdown.

Despite the uncertainty, the market is being supported by statements from D. Trump, who says that peace in the Persian Gulf is only a matter of time.

Macroeconomic data:

• The NY Empire Index came in at 11, versus expectations of -0.5 (previous: -0.2).
• Later in the day, investors will also see weekly crude oil and distillate inventories.
• Toward the end of the session, the so-called “Beige Book” and TIC net flows will be published.
• Additional insight may also come from a speech by FOMC member Bowman.

US100 (D1)

Price remains near a strong resistance area around 26,000 points. The market may currently need consolidation before a breakout above the recent highs becomes possible—this view is supported by a clearly elevated RSI. If buyers want to keep the initiative, holding at least ~25,800 is necessary. A move away from resistance could allow for a deeper correction and a return to the 23.6 Fibonacci level or even the 38.2 Fibonacci level. Source: xStation5

Company news:

• Broadcom (AVGO.US): The company announced an expansion of its partnership with Meta related to AI infrastructure. Shares are up about 3% at the open.
• Robinhood (HOOD.US): The financial trading platform is up more than 5% after the US regulator (SEC) lifted restrictions on minimum deposits for so-called day trading.
• Cloudflare (NET.US): The company is up about 2% after receiving a positive recommendation.
• Micron (MU.US): A company vice president sold $10 million worth of shares; the stock is down about 2%.
• Rigetti Computing (RGTI.US): Nvidia publications regarding new models focused on advancing quantum technology are supporting companies in the sector. The stock is up more than 4%.
• Snap (SNAP.US): The company announced layoffs affecting 16% of its workforce. The share price is up about 7% in pre-market trading.