US OPEN: Valuations under pressure amid deregulation spree

At the beginning of Friday's session in the USA, one can observe the continuation of the nervous sentiment from yesterday. On Thursday, the main Wall Street indices fell by over 1%, but by the end of the session, buyers managed to maintain the initiative. The session opens with a drop in US 100 contract prices by almost 1%. The market may once again try to discount the sustainability of the AI boom and whether the cuts expected by the FED are adequate to the economic condition.

Austan Goolsbee, a member of the FOMC known for his conservative approach to lowering rates, will have his speech today. Markets can expect insight into the hawkish side of the FOMC's perspective.

Donald Trump signed a decree prohibiting individual states from introducing local regulations regarding AI. The Secretary of Commerce has 90 days to evaluate existing state-level laws that would conflict with the new document written in close collaboration with representatives from Google, Nvidia, OpenAI, and Apple.

US100 (D1)

Source: xStation5
On the chart, we can observe a formation that could potentially turn out to be an extended H&S pattern. For buyers, the key task will be to defend the FIBO 23.6 and FIBO 50 levels, which will allow negating the realization scenario. Support for demand will not only be the FIBO levels but also the EMA100 average. Potentially significant, one can also observe a sudden narrowing of the distance between the signal line and the MACD average, which may give the first signals of valuation weakness.

Company News:

• Lululemon (LULU.US) - The company gains 12% after the resignation of the current CEO.
• Broadcom (AVGO.US) - The specialist electronics manufacturer loses over 7% after disappointing sales forecasts.
• Roblox (RBLX.US) - The online platform/game operator loses about 4% after receiving a negative recommendation from an investment bank.
• Eli Lilly (LLY.US) - The American FDA plans to accelerate the drug licensing cycle.
• Newmont Corp. (NEM.US) - Mining companies dealing with gold gain on the wave of precious metal increases. The company grows by 1.5%.
• Quanex Building (NX.US)—The designer and manufacturer of building components grows by 25% after significantly beating expectations for Q4 results. Earnings per share amounted to 83 cents per share compared to forecasts of about 52%, EBITDA and net sales fell.
• Lockheed Martin (LMT.US)—Switzerland reduced its order for F-35A aircraft to maintain the current budget allocated for order fulfillment after unexpected price increases.
• Canopy Growth (CGC.US) - Companies involved in the production and distribution of marijuana grow after comments from Donald Trump, who announced the lifting of some restrictions related to the substance trade. The price rises by about 25%.