(Click on image to enlarge)

According to stock trading platforms, the S&P 500 index of US stocks added 0.25% to record its second consecutive record close on Tuesday, supported by the rise in Nvidia shares. The Nasdaq index achieved marginal gains to achieve its seventh consecutive record close, while the Dow Jones index added 56 points. According to trading, Nvidia shares rose 3.5%, surpassing Microsoft and Apple shares as the most valuable public company. Other semiconductor stocks also rose, including Qualcomm (2.2%), Taiwan Semiconductor (1.4%), and Micron Technology (3.8%).

In general, investors were closely watching key economic data and comments from US Federal Reserve officials for guidance on the economic outlook and potential policy changes. US retail sales for May were weaker than expected, suggesting a slowdown in consumer spending, while industrial production beat expectations. At the same time, New York Fed President Williams highlighted the positive direction of the US economy but did not set a timetable for potential interest rate cuts, while Fed Governor Kugler expects a rate cut later this year.

US markets will be closed on Wednesday for the Juneteenth holiday.

In contrast, European stock markets were set for a higher open on Wednesday, rising for a third straight session as UK inflation figures for May came in line with expectations, with headline and core annual inflation rates coming in at 2% and 3.5%, respectively. Moreover, the readings come a day ahead of the Bank of England’s June policy decision, where it is expected to keep interest rates unchanged at 5.25% before cutting them in August. Meanwhile, trading volumes are expected to remain thin globally as US markets are closed for a holiday. Euro Stoxx 50 futures were up 0.2% in pre-market trading.

EUR/USD Technical analysis and forecast:

Based on the daily chart, EUR/USD is still on a downward trajectory since settling below the 1.0800 level. If the US dollar gains more momentum, the path to the 1.05 psychological support could be paved. Especially, if the current political concerns in the Eurozone expand. In contrast, to break out of the current downward channel, the currency pair should return to the vicinity of the 1.0830 and 1.0900 resistance levels, respectively.

More By This Author: