Trading volatility: S&P 500
US earnings kick off on Friday which may be the next source of trading volatility. For the broader market in the week starting 8 January, the S&P 500 could be the area to watch.
The main theme is likely to be what sort of damage has been done to the corporate world from high interest rates. This quarters numbers will likely be the measure of that.
(AI Video Summary)
Banking stocks to announce earnings
Next week, the focus for traders will be on the fourth quarter earnings season in the United States. Several banking stocks, such as Citigroup, Bank of America, Wells Fargo, BNY Mellon, JPMorgan Chase, and United Health, will be announcing their earnings results on Friday. These announcements are expected to cause some excitement in the markets, which can create opportunities for traders. While you can trade these individual stocks, it's also important to pay attention to the S&P 500 chart, as it may show interesting movements. For example, if the chart breaks below a key support level at 46.35, it could lead to further declines.
JPMorgan Chase doing well despite banking sector challenges
There is concern that the banking sector is facing some challenges. However, JPMorgan Chase is actually doing quite well and has reached an all-time high. This bank is benefiting from rising interest rates, limited M&A (mergers and acquisitions) activity, and trading opportunities. This means JPMorgan Chase has a lot of potential for future growth. But it's not just JPMorgan Chase that will be in focus next week. The other banks reporting their earnings can also contribute to market volatility.
To sum it up, next week marks the beginning of the fourth quarter earnings season, with various banking stocks announcing their earnings results. This is expected to create volatility in the markets, which can provide trading opportunities. JPMorgan Chase is particularly noteworthy because of its strong performance and potential for growth. It's also worth keeping an eye on the S&P 500 chart, as a break below a key support level could lead to more downward movements. Overall, next week promises to be an exciting day of trading for the main markets.
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.
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