US100 gains more than 1.5% 📈

⚡ Nasdaq erases yesterday's declines and surpasses 12,900 points

Tech stocks are leading today's robust rallies on Wall Street, which has digested the FOMC's decision to raise rates by 25 basis points and Powell's comments, which were received relatively dovish. The biggest gains are currently being seen among the largest megacaps such as Meta Platforms and Alphabet. US100 futures contracts are currently gaining more than 1.5% and breaking above the 12,900 point barrier. US unemployment claims came in below expectations, indicating continued strength in the labor market. Investors took this as a sign of a strong economy and still high demand, which could support corporate earnings. 

Improved sentiment around major bank stocks also supports the rebound in the indices. Ultimately, Powell's speech yesterday was received positively overseas, with investors expecting a maximum of one more interest rate hike this year. Although comments from credit rating agencies Moody's and Fitch were rather negative yesterday, sentiment among banks improved after comments from Citigroup CEO Jane Fraser according to whom the credit crisis is currently not a systemic threat and banks' financial remain healthy. Nevertheless, Janet Yellen yesterday negated the idea of implementing a 'general' deposit guarantee scheme. Ultimately, however, this comment did not affect the weaker sentiment in today's session, suggesting that the bulls may be gaining the upper hand. 

US100 chart, D1 interval. Bulls are attempting to climb back above 12,900 points, which coincides with the 38.2 Fibonacci retracement. A potential overcoming of the resistance also marked by previous price reactions could open a path for the benchmark above 13,000 points. Source: xStation5