US500 rebounds in volatile trading

Major Wall Street indices erased early losses and are adding over 1% as traders took advantage of lower valuations following a selloff that pushed US stocks to new lows. Market moves came after the Bank of England started new emergency quantitative easing to deal with a tumult in the gilt market triggered by a dubious fiscal plan recently announced by the UK government.

Also declining Treasury yields prompted investors to pile into tech and other high-growth stock, even despite the fact that Apple shares lost 3% as the company plans to lower production of its new iPhones this year amid signals of weak demand. Moreover dovish comments from FED Bostic supported market sentiment. Bostic believes that the US economy still has a lot of momentum and policy must be moderately restrictive. He expects a 75 basis point increase in November and a 50 basis point increase in December, as first signs of easing price pressures emerged. Aside from the housing market, other signs of cooling demand include businesses reporting a steep decline in consumer discretionary purchases and easier hiring.

US500 - buyers managed to defend key support at 3630 pts where lows from June 2022 are located and today launched a recovery move. Nevertheless as long as the price sits below the resistance  zone around 3800 pts which is marked with 38.2% Fibonacci retracement of the large bullish wave from the beginning of 2020, the main sentiment remains bearish. Source: xStation5