As the opening bell rings on major US stock exchanges, the major indices are trading higher. However, the Nasdaq, which surged more than 200 points in pre-market trading, is now up just 136 points. However, with the declines this week, any gains are acceptable at this point.
The current market snapshot shows:
- The Dow Jones Industrial Average rose 447 points, or 1.12%, to 40,384. For the week, the index is now up 0.26%.
- The S&P 500 is trading at 46.80 points, or 0.86%, at 5,445.94. For the week, the index is down -1.07%.
- The Nasdaq is trading at 143 points or 0.82% at 17323. Over the week, the Nasdaq is down -2.30%.
The Russell 2000 Small Cap Index (up 3.24% this week) is trading up 38.52 points, or 1.73%, at 2,261.42. For the week, the index is up 3.435%. Last week, the index was up 1.67% and the week before that, it was up 5.996%.
From a technical perspective, a break above the 17353 level and the swing zone at 17494 – 17544 is necessary to give buyers some confidence and give sellers some reason to pause on the downside.
Looking at US revenues:
- 2-year yield 4.387%, -5.6bps
- 5-year yield 4.085%, -6.0 bps
- 10-year yield 4.205%, -5.0 bps
- 30-year bond yield 4.460%, -3.9bps
Looking at other markets:
- Crude oil price fell by $0.81 to $77.44. Over the week, crude oil price fell by -1.35%.
- Gold is trading up $14 or 0.59% at $2379.30, Gold price down -0.89%
- Silver prices fell by four cents, or -0.16%, to $27.79 an ounce. The price is down -4.81% this week.
- Bitcoin price rose to $67,454 ahead of the conference that will be held at the end of the week where former President Trump will give a keynote speech. Bitcoin closed last week at $68,158. So the price is still lower during the week, but it is far from its low of $63,424.
There was talk of USD/JPY as the reason for the stock’s decline (which is debatable). USD/JPY rose to technical resistance between 154.53 and 154.88, and found willing sellers. The price returned lower to test the 38.2% retracement level of the move up from the December 2023 low at 153.65. The pair found some supportive buyers on the lookout.
For stock traders, trading the USD/JPY, holding this level and bouncing could help stocks. Conversely, a break below 153.65, followed by further USD/JPY selling, could hurt stocks (especially USD/JPY).