S&P 500 and NASDAQ Close to Record Highs as Indices Diverge

Hello traders, happy Wednesday! We’re in the midst of the first trading week of July, and the markets are buzzing. Yesterday, the Eurozone’s CPI flash estimate came in a notch higher than anticipated, yet the Euro remained surprisingly weak. Typically, higher inflation boosts a currency’s value, but yesterday was an exception. In the US, JOLTS job openings surpassed expectations, topping 8 million, but this too didn’t strengthen the dollar, which ended as one of the weaker currencies for the day.

The currency market has been vibrant with the Canadian dollar and British pound emerging as the strongest performers yesterday. Conversely, safe-haven currencies like the Swiss franc, Japanese yen, and American dollar showed weakness. Today, the Australian dollar leads the pack, buoyed by better-than-expected retail sales data, clocking in at 0.6% against a forecast of 0.3%. Today’s focus will be on US unemployment claims, ISM services PMIs, and the FOMC meeting minutes, making it a potentially volatile day for the dollar and the indices.

Indices had a robust session yesterday. The S&P 500 saw a significant bounce from the key support level of 5,445 points, edging closer to long-term highs. The NASDAQ is also nearing its record levels, while the Dow Jones and European indices continue to lag behind. The divergence in performance among these indices suggests varied market sentiment, with US tech stocks showing particular strength.

In the commodities space, oil continues its upward trajectory, hitting new mid-term highs and maintaining bullish momentum. Conversely, precious metals like gold and silver are experiencing a mild bullish correction but are approaching crucial long-term resistance levels. Traders are keeping a close watch on these commodities, as their performance at these resistance levels could dictate the next significant move.

Source: https://www.axiory.com/analytics/market-news/s-p-500-and-nasdaq-close-to-record-highs-as-indice