S&P 500 RISES AS BOND YIELDS CLIMB BACK FROM HISTORIC LOWS
S&P 500 futures are currently trading at 2888.50- higher by 1.44% as compared to the previous close. The index futures closed in positive territory in the last trading session also.
In the cash markets, the benchmark index added 1.40% at the time of writing. U.S. equities rose today as bond yields climbed back slightly from their historic lows which alleviated recession fears to some extent.
The yield on the 30-year Treasury bond fell to a record low on Thursday as traders sought out safe-haven assets. The yield on the benchmark 10-year note also hit a three-year low on Thursday.
The index’s bank sub-sector also gained 2.61% as rate-sensitive lenders rose after Treasury bond yields easing off their lows.
Stocks of Nvidia surged 6.62% after it reported better-than-expected second-quarter earnings.
General Electric’s stocks rose 8.36% after its CEO Larry Culp bought about $2 million worth of the company’s stocks.
On the other hand, stocks of Applied Materials declined 3.97% after the company said that recovery in the memory chip market is unlikely before next year.
All of the eleven major index’s sectors were trading higher, with the technology sector leading the gains.
The benchmark index recorded 29 new 52-week highs and 7 new lows. The broad-market index is down about 1.7% so far this week and set to post a third consecutive week of losses.
On the economic front, Building Permits for July released earlier today came in at 1.336M. Permits were above the market expectation of 1.270M. The University of Michigan’s consumer sentiment index reading (Preliminary reading) for August also released earlier today came in at 92.1. The index reading was below the consensus estimates of 97.2.
On the technical front, the RSI is currently at 44.14% and suggests that the market can move in the upward direction. The current price is above the MA5. The current price is below the middle line of the Bollinger bands but is heading upwards.
Overall Bias is Positive and Short-term trades can be initiated with tight Stop Loss and Take Profit targets.
Trade Suggestion-Limit Buy At 2882, Take Profit At 2896 Stop Loss At 2875