The Trade: Nasdaq and S&P 500 surge to new highs amid Fed rate cut speculations
IG's Tony Sycamore analyses the continued bullish trend in the Nasdaq and S&P 500, driven by supportive signals from the Fed. Key insights on ASX 200 performance, commodity trends, and Bitcoin's technical levels.
Originally recorded on Tuesday, 10 July.
IG's Tony Sycamore notes that US tech stocks are experiencing a remarkable surge, driving the Nasdaq and S&P 500 to new highs. This bullish momentum in tech is potentially extending the melt-up towards the 20,000 mark.
In contrast, indexes like the ASX 200 are underperforming due to their greater exposure to the struggling Chinese market. Significant selling orders have impacted the ASX 200 since March, likely instigated by offshore sellers.
The conversation also highlighted the yen's performance ahead of a Bank of Japan meeting, with potential policy adjustments on the horizon. Similarly, positioning in gold and Bitcoin showed mixed signals, with gold within a well-defined range and Bitcoin's price action suggesting a possible continuation of corrective movements unless key support levels hold.
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