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According to US media reports on the 9th, the US Senate has reached an agreement to end the federal government shutdown.New York gold futures touched $4,050 per ounce, up 1.01% on the day.On Monday, November 10, the Hang Seng Index opened 77.57 points higher, or 0.3%, at 26,319.4 points; the Hang Seng Tech Index opened 21.05 points higher, or 0.36%, at 5,858.41 points; the H-share Index opened 24.16 points higher, or 0.26%, at 9,291.72 points; and the Red Chip Index opened 3.6 points higher, or 0.09%, at 4,184.58 points.Hang Seng Index futures opened 0.82% higher at 26,408 points, a premium of 171 points.November 10th - The latest summary of the Bank of Japans policy meeting indicates that the next interest rate hike could be implemented as early as December, consistent with the expectations of many market participants. At its two-day policy meeting, which concluded on October 30th, the Bank of Japans board of directors voted 7-2 to maintain the current interest rate. The minutes released on Monday (November 6th) showed that one member noted that "the conditions for further normalization of the policy rate are likely largely in place," while emphasizing the need to examine potential inflation trends. These minutes suggest that the nine-member board of directors is increasingly inclined to believe that the next interest rate hike is imminent, consistent with Governor Kazuo Uedas recent statements that "action may be taken in the coming months." With almost all market observers expecting the bank to raise borrowing costs no later than January next year, the focus has shifted to whether the rate hike will occur on December 19th or in January of the following year.

S&P 500 (SPY) Rebounds From Session Lows As Energy Stocks Rally

Alice Wang

Aug 30, 2022 15:20

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Stocks Continue to Face Some Pressure

As traders continued to pay attention to Powell's hawkish remarks, the S&P 500 fell below the 4050 mark.


It is not unexpected that tech companies had a poor day given that the yield on 10-year Treasuries has risen back over the 3.10% mark. Apple, Microsoft, Tesla, NVIDIA, Meta, and other well-known IT companies are still under a lot of pressure.


3M Company was the biggest laggard in Dow Jones. The stock is still significantly under pressure because investors are concerned that litigation involving combat earplugs might cost the business up to $100 billion. A court decided on Friday that the bankruptcy of the subsidiary of 3M Business could not bar legal actions against the parent company.


The dominant market sector at the moment is energy equities. Leading energy equities like Exxon Mobil and Chevron received further support as WTI oil rose amid violent demonstrations in Iraq. At the close of today's trading session, the S&P 500 may go higher due to the uptick in the oil sector.

Will There Be Another Sell-Off?

Traders worry that the economy will face severe pressure as a result of the Fed's aggressive rate rises. Since many of the shares in this market category are trading at high valuation levels, tech stocks continue to be sensitive to changes in Treasury yield dynamics. For instance, NVIDIA, which has lost nearly 45% of its value so far this year, is still selling at a projected P/E of 35.


It would be stupid to anticipate that the S&P 500 would continue to decline day after day, despite the fact that increasing Treasury rates and future Fed rate rises are significant negative drivers. There are no indications of significant liquidity issues worldwide, and there should be enough buyers anticipating pullbacks to start positions in American equities. The market may get extra support from the surge in energy equities.


The S&P 500 is attempting to climb back over the resistance of 4040 after failing to go below the 4000 mark. If this effort is successful, the S&P 500 will advance in the direction of the 50 EMA, which is close to the 4080 level. The test of the resistance at 4115 will be possible if a move is made above the resistance at the 50 EMA.


To have a chance of gaining further downward momentum, the S&P 500 has to settle again below 4040 on the support side. S&P 500 is placed at its next support level at 4000. The S&P 500 will move in the direction of the support at 3975 if it is able to settle below this point. If the S&P 500 moves below 3975, it will be forced into the 3945 support level.

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