Morning Wire TV: Daily Market Snapshot (video)
Since early April, US equity markets have been in a persistent uptrend.
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That’s been is aided and abetted by (i) notable US dollar weakness; (ii) lower bond yields (resulting in tech outperformance); and (iii) a strong Q1 earnings season, with most US companies surprising markets to the upside. In that respect, and while US equity indices mostly chopped sideways last week, price action remained reasonably encouraging for the bulls, with both the S&P500 and NASDAQ100 holding above key support levels (i.e. their intra day lows from last week) and with the S&P500 making a new all time high on Friday (intra-day).
The key question, therefore, is: Will that bullish price action persist?
Several key events this week bear watching closely in that respect, including the Fed’s policy decision on Wednesday (at 7pm, which will be followed by a press conference at 7.30pm). Also on Wednesday, President Biden is addressing a joint session of Congress and is expected to lay out his “American Families Plan” (and how it will be funded). There are also earnings reports from a number of key tech companies, including Microsoft & Google (tomorrow), Apple, Facebook (Wednesday) and Amazon (Thursday).