Thursday saw U.S. stocks suffer one of their worst sessions so far this year. The benchmark S&P 500 index closed 1.5% lower to represent its biggest one-day drop since May. The sell-off continued in Asia overnight and there was some follow-through in Europe this morning. U.S. index futures have drifted further lower on follow-up technical selling momentum as more bullish speculators have been forced to liquidate their positions.
U.S. indices are on course to open a little higher on Wednesday, buoyed by stronger earnings from Apple on Tuesday and ahead of some important jobs data from ADP which will act as a precursor to Friday’s non-farm payrolls number.
Since bottoming in early July, the energy sector ETF has rallied by about 5% to break meaningfully above its 50-day moving average for the first time since January. The ETF also was able to clear its eight-month descending trend line in the same area.
U.S. futures are pointing to a stronger open on Thursday, with the NASDAQ seen leading the way boosted by earnings from Facebook as we await results from a number of other companies on what is likely to be one of the biggest days of earnings reports this year.
The main U.S. stock market indexes gained between 0.4% and 0.6% on Friday, extending their short-term uptrend, as investors' sentiment remained bullish following recent economic data releases, among others.
In June the major European equity indices ended lower, while in the United States the markets were mixed as the tech-heavy Nasdaq 100 bucked the trend of an otherwise bullish month. European equities were undermined in part because of a firmer euro and pound, while a weaker dollar helped to support U.S. equities. The greenback eased against a basket of foreign currencies for the second consecutive quarter and the fourth straight month.
Yesterday’s session was not like the previous ones – in the previous days, the precious metals sector moved lower together and mining stocks were leading the way. Yesterday, gold and silver declined, but miners were barely affected. Does this strength indicate a likely turnaround?