US Stock Futures Steady As Earnings Boost Sentiment, Dollar Holds Near Yearly Lows



US Stock Futures:

  • Futures tied to major indexes trade near breakeven as upbeat corporate earnings and expectations of a soft landing scenario support market sentiment.
  • Carvana shares drop 10% in extended trading after announcing an earlier-than-scheduled earnings report.
  • Dow, S&P 500, and Nasdaq Composite all recorded gains in Tuesday’s regular session, with technology, financials, and energy sectors leading the way.
  • Housing and building permits data, as well as earnings reports from Tesla, Netflix, and Goldman Sachs, are in focus for investors.


Dollar and Bonds:

  • Dollar index remains steady around 100 as investors evaluate the Federal Reserve’s monetary policy outlook.
  • US retail sales data for June shows a 0.2% increase, below expectations, while easing US inflation raises hopes of Fed policy tightening nearing its end.
  • Government bond yields worldwide continue to decline for the third consecutive day, with the US 10-year Treasury note yield reaching a fresh low since late June.
  • Market pricing indicates expectations of a 25 basis points rate hike by the Fed next week, but opinions differ on the need for further increases. ECB and Bank of Japan policy decisions are also anticipated.

The E-mini S&P 500 displayed an imbalanced market behavior to the upside, primarily driven by a weakening dollar and negative volatility in the medium- to long-term perspective. However, sellers may be on the lookout for patterns on the daily interval.

The buying hype can be attributed to the potential dovish approach of central banks in response to positive inflation data. However, there are indications of a possible recession on the horizon due to higher interest rates.

Traders are currently inclined towards the buying side, supported by the technical bullish and imbalanced market structure that persists on the charts.

More By This Author:

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US Stock Markets Steady Ahead Of Earnings Deluge, Dollar Weakens

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