The beginning of the new week is marked by investors' hopes and concerns regarding important geopolitical and macroeconomic factors. The Trump-Putin meeting in Alaska took place without commitments or declarations regarding peace, which is reflected in market disappointment.
According to a Deutsche Bank report, investor sentiment has fallen to its lowest level in 3 months.
Apollo Sløk also warns about the deteriorating macro environment. The decline in maritime trade flows signals a weakening consumer. A Scandinavian private fund also points out that capital allocation in AI companies already exceeds the extremes from the Dot-Com bubble period.
Source: Appolo Sløk.
Source: Bloomberg Finance LP
After the unproductive meeting in Alaska, another uncertainty that the market is waiting to be resolved is the FED's stance on future policy. The market is searching for direction, but still cannot find it, as the session opens at Friday's closing level.US500 (D1)
The main index of the Wall Street stock exchange is currently at the upper limit of a narrowing consolidation channel, within an upward trend. The price is well above the averages, yet the RSI indicators do not yet suggest overbought conditions. The market is searching for a reason to continue rising, but if it doesn't find one, the fall could be painful. In such a case, the initial support levels are 6360, followed by 6250, where the recent lows and the EMA50 average are located. Additional support may come from the EMA100 and EMA200 averages, with the latter also positioned at the lows from 2 months ago, making it a very important level in the event of potential declines.
Company's News:
UnitedHealth Group (UNH.US) - The star of the session is currently the controversial company providing services in the health insurance industry. The company has had a very tough year, but its bad streak may reverse following the announcement on Friday of large purchases of shares and options by Warren Buffett and Michael Burry. On Friday, the company closed the session with a growth gap of over 10%. On Monday, UnitedHealth is rising another 2% at the opening. Time will tell if the change in sentiment is lasting.
Source: Xstation
Palo Alto (PANW.US) - At the end of Monday's session, one of the leaders in the cybersecurity industry is set to release its results for the first half of 2025. Expectations are for revenues of $2.5 billion and EPS of 0.85, marking another growth milestone for the company.
Novo Nordisk (NVO.US) - The pharmaceutical company, known for its breakthrough obesity drug Ozempic, is recovering some of its recent losses on a wave of optimism related to a new product that has received FDA approval. The drug, "Wegovy," aids in the treatment of liver diseases.
US Tax Credit - New rules for granting tax credits for renewable energy infrastructure in the USA are supporting valuations of companies in this sector. Among these companies is Vestas, which is up 15%.
Soho House (SHCO.US) - The American hospitality and restaurant company is set to be acquired by a private investment fund. The investment group is willing to pay $9 per share, representing an 18% premium over the current market valuation.
Dayforce (DAY.US) - The company providing software solutions for businesses is up 13% on news of being selected as a supplier by Thoma Bravo.
Daily Summary: Powell pulls markets back up! 📈 EURUSD higher
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