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• Dow Jones little changed while extending losses for the fourth session in the overnight session.
• S&P 500 dropped 0.5%, Nasdaq Composite fell 1%. Both markets pulled back.
• Positive quarterly reports boost Applied Materials and Ross Stores, while Keysight Technologies and Estee Lauder face declines.
• Dow on track for its largest weekly decrease (2.3%) since March.
• S&P 500 and Nasdaq headed for third consecutive weekly losses, longest since February and December respectively.
• Federal Reserve’s July meeting minutes hint at possible further interest rate hikes due to lingering inflation concerns.
• Evergrande’s US bankruptcy filing and credit risks in China weigh on market sentiment.
• Dollar index retreats to around 103.2 but remains on course for fifth consecutive weekly gain.
• Falling unemployment claims signal a tight labor market in the US.
• 10-year Treasury yield slides to 4.22% after reaching 4.328%, prompted by economic impact concerns tied to high interest rates.
• Fed minutes underscore inflation risks, possibly leading to more monetary policy tightening.
• Despite recent inflation data, strong US economy and job market sustain high interest rates.

The E-mini S&P 500 has gained momentum, potentially due to buyers entering the market around the recent lows, indicated by the b-shaped profile structure. This structure could imply a bullish inclination for the upcoming session, contingent upon today’s closing price.

The market seems to be experiencing absorption alongside potential short covering, contributing to the upward movement. The relatively stable dollar might offer some support, while the positive volatility observed in the ES Futures might be perceived as a bearish factor, potentially leading to rotational trading today.

The overall robust labor market, backed by positive economic data, could compel the central bank to maintain a hawkish stance against inflationary pressures. This sentiment might bear negatively on the US stock market. However, any indications of a more dovish approach could draw buyers back in. Negative economic data could reinforce this viewpoint.

According to data from August 8th, the asset manager sector appears to have liquidated long positions while initiating new short positions. In terms of options, the first standard deviation of volume perspective indicates heightened selling interest for this session.

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