US OPEN: The technology sector gains, so does Oil

Another week on the U.S. stock market is starting with mixed sentiment. US100 is up by about 0.2–0.3% at the start of the session, US500 stays flat, US2000 suffers decline of aprox. 0,7%. 

At the moment, the market is seeing a clash between an untiring positive trend focused on technology companies and increasingly audible skeptical voices, supported by news from the Middle East.

Despite market sentiment suggesting that a peace declaration between the U.S. and Iran has effectively been signed or will be signed soon, the situation remains unclear. The ceasefire is still fragile, and the strategically important Strait of Hormuz remains closed. Just last night, CENTCOM confirmed an Iranian attack on U.S. facilities in Kuwait.

Macroeconomic data

In the U.S., ISM and PMI data from the manufacturing sector will be released.

• The market expects the producer prices index to rise to 55.3 in May.
• The main ISM manufacturing index is expected to increase to 53 points.

US100 (D1)

The index has maintained strong upward momentum since breaking out from a local low in March. RSI remains elevated, MACD is normalizing, but the EMA structure remains clearly bullish. The key resistance is the 23.6% Fibonacci retracement (~30,485), while the first support for buyers is around ~29,730. If the 23.6% Fibonacci level is broken in the near term, the next target for buyers will be the area around 31,755 points. Source: xStation5

Company news

• Software companies: Nvidia CEO Jensen Huang noted in one of his statements that the software sector is not at as much risk from AI as some may think. Strong gains can be observed across the market. Leaders include ServiceNow (NOW.US), Salesforce (CRM.US), Adobe (ADBE.US), Workday (WDAY.US), and Palantir (PLTR.US).
• Nvidia (NVDA.US), Qualcomm (QCOM.US): Qualcomm is down about 7%, Nvidia is up just under 2%, and ARM is gaining more than 13% following Nvidia’s new product presentations. Investors are expressing concerns about competition for the “Snapdragon” product line.
• Revolution Medicines (RVMD.US): The company is up about 10% after presenting research results on a new pancreatic cancer drug.
• Taylor Morrison Home Corp. (TMHC.US): The construction company is up about 20% after Berkshire Hathaway decided to purchase the company for $8.5 billion.
• IBM (IBM.US): The stock is up about 8%. Bloomberg News attributes the rise to a new video in which Donald Trump reportedly speaks positively about the company’s CEO.