The XJO is expected to rebound on open this morning, with futures pointing to an open around 8,400. The rebound comes after a strong US session, with the SP500 index closing at its highest ever level.
US markets enjoyed strength after Trump stated he would demand lower interest rates from the Federal Reserve, and that there was no timeline on Chinese tarrifs. However, the optimism was somewhat offset by threats to European trade.
Overall the market is in an upwards movement with higher peaks and troughs, but we rely on US strength for our upwards movement to continue. With US markets breaking into fresh highs overnight, this could allow our market to push back to 8,500, though there are potential sticking points at 8,400 and 8,450 in the short-term.
US Markets
US shares closed higher again overnight and the SP500 reached a record high close. It came after Trump stated he would demand lower interest rates, and that he wasn’t setting a date for tarrifs on China. Optimism is keeping things going in the short-term, but there is always a risk that reality will set in for US markets. This could come as early as next week’s Federal Reserve meeting, though Trump might also trigger some selling with his volatile behaviour.
Technically, The SP500 broke above 6,100 overnight, which indicates further upwards movement, its hard to say where this movement might stall, but given that markets like round numbers, 6,200 could be a potential target.
All eleven sector groups of the SP500 closed higher overnight, with Healthcare, Industrials, Real Estate, and Communications the best performers.
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