Beat the street: US rates and earnings see higher markets
The biggest three-day slide in volatility since March 2022 has seen traders move into risk assets. This comes after the Fed guided a quiet path ahead on US rates and European indices were up across the board.
(Video Transcript Summary)
US unemployment higher than expected
In this video, Jeremy Naylor talks about what's been happening in the foreign exchange markets. The DXY, which indicates the value of the US dollar, is down and the dollar basket is decreasing because of a message from the Federal Reserve (Fed).
In terms of companies' earnings, Peloton Interactive, a popular exercise equipment company, had a drop in revenue and paid subscribers. And pharmaceutical firm Moderna had to write off the value of some unused COVID shots. This can have an impact on their stock prices and overall performance.
The US weekly jobless claims data, which measures how many people are filing for unemployment benefits, came in slightly higher than expected, which can affect investor sentiment and the overall economy.
Jeremy notes that in terms of volatility and the selling of the US dollar, the Andrew's Pitchfork pattern suggests that the market might continue to go down.
Dow, Broad Market Indices, Tech 100 on the up
Moving on to stocks, Jeremy gives updates on the Dow Industrials, Broad Market Indices and the US Tech 100. He says that these indices have seen gains, meaning the overall value of the companies in these indices has increased. This is good news for investors who own stocks in these companies.
Jeremy then looks ahead to Apple's upcoming earnings report. He discusses what to expect in terms of revenue and earnings per share. This is important because Apple is a big player in the stock market and its performance can influence other companies.
Lastly, Jeremy mentions Coinbase Global, a cryptocurrency exchange. He talks about their revenue and loss per share forecasts, while also noting some concerns investors have about the company.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
