S&P 500 FALLS BELOW MA5 ON TRADE CONCERNS
S&P 500 futures are currently trading at 2981.20- lower by 0.17% as compared to the previous close. The index
Futures, however, closed in positive territory in the last trading session.
In the cash markets, the benchmark index inched down 0.12% to 2,981.39 at the time of writing.
U.S. equities dropped today as investors monitored the latest trade developments and assessed a whistleblower complaint against the U.S. President that was released.
Chipmakers led the losses today. Micron Technology dropped 2.22% ahead of its quarterly earnings which are scheduled for later today. Nvidia and Advanced Micro Devices dropped 1.3% and 0.98% respectively at the time of writing.
Shares touched their session lows after news that Washington is unlikely to extend a temporary waiver that allows U.S. companies to sell supplies to Huawei.
The U.S. President said on Wednesday that a deal to end the standoff between the two economic powerhouses could happen sooner than expected.
The whistleblower said in the complaint that President Trump received information from U.S. officials that the president used his office to solicit interference from a foreign country ahead of the 2020 election.
The benchmark index recorded 23 new 52-week highs and five new low.
Other top losers in the S&P 500 include Carnival Corp (down 8.2%), Nektar Therapeutics (down 7.1%), and Abiomed (down 4.9%) at the time of writing.
On the economic front, the final estimate of the US GDP for the second quarter was released on Thursday. The QoQ rate of change in the GDP was +2.0%. The GDP growth was in line with market expectations.
In addition, Initial Jobless Claims released earlier today rose to 213K in the week ended 21st September from 210K in the week prior. Claims figure was above the consensus estimates of 212K.
On the technical front, the RSI is currently at 52.52% and suggests that the market can continue trading sideways. The current price is below the MA5. The current price is below the middle line of the Bollinger bands and is heading downwards.
Overall Bias is Negative and short-term trades can be initiated with tight Stop Loss and Take Profit targets.
Trade Suggestion-Limit Sell At 2984, Take Profit At 2972 Stop Loss At 2990