S&P 500, Nasdaq Set To Break 6-Day Rally Today? Traders Await Fed Cues, Analyst Says Seasonal Rally Has Started With Gusto

S&P 500, Nasdaq Set To Break 6-Day Rally Today? Traders Await Fed Cues, Analyst Says Seasonal Rally Has Started With Gusto

Grand News Network / November 7, 2023 12:30 PM

Sentiment appears to have dipped after a six-session winning streak. Stock futures indicate a modestly lower opening on Tuesday as small and mid-cap earnings reports gain momentum. Reaction to earnings has been mixed, adding to the prevailing uncertainty. The day is expected to be dominated by a series of Federal Reserve speeches. Oil prices are retreating due to mixed China data, and bond yields are slipping.

Cues From Monday’s Trading:

Stocks traded lacklusterly on Monday as traders took a breather following recent gains. Comments by Federal Reserve Governor Lisa Cook, leaning towards dovishness, encouraged traders to stay invested in stocks. The Fed’s senior loan officer survey results showed decreased loan demand and continued tightening of credit terms by banks in the third quarter, albeit at a slower pace.

The major indices opened higher but quickly reversed their gains and steadily declined through the morning session. In the afternoon, the indices pared their losses, with the Dow Industrials and the S&P 500 Index edging into positive territory in the final minutes of trading. The Nasdaq Composite strongly rebounded into positive territory by late afternoon.

In contrast, the Russell 2000 Index remained below the unchanged mark for most of the session and closed notably lower.

Healthcare and IT stocks were among the best-performing S&P sectors, while energy and real estate stocks weighed down the market.

US Index Performance On Monday


Index Performance (+/-) Value
Nasdaq Composite +0.30% 13,518.78
S&P 500 Index +0.18% 4,365.98
Dow Industrials +0.10% 34,095.86
Russell 2000 -1.29% 1,737.94

Analyst Color:

“It’s likely that we’ll see some profit-taking now that the strong rally has subsided,” said fund manager Louis Navellier.

The fund manager attributed the recent rally to short covering as on a technical basis, the market had become oversold. Another possibility is that for ...

Full story available on Benzinga.com


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