S&P 500 bears are moving in but on the front side of bull trend

US stocks slammed into the close and erode the NFP knee-jerk rally.
Investors rethink the US data this week and the hawkish sentiment is a dark cloud over Wall Street.

Ross J Burland FXStreet

The S&P 500 (US500) index fell on Friday with weakness intensifying into the close. The US Nonfarm Payrolls data from the Labor Department, which offered a mixed view of the US job market, weighed on market sentiment later in the day. The US500 is down some 0.15% at the time of writing, falling from a high of 4,441.50 and reaching a low of 4,397.2.

Nonfarm Payrolls (NFP) in the US rose 209,000 in June, the US Bureau of Labor Statistics reported on Friday. This reading came in below the market expectation of 225,000. May's increase of 339,000 got revised lower to 306,000. The US Dollar came under renewed selling pressure with the initial reaction to the mixed jobs data and the US indexes rallied. However, bears moved in as the combined data this week has suggested the Federal Reserve will likely resume raising interest rates later this month.

For stocks, next week brings quarterly results from some of the big US banks in what will mark the unofficial start of the second-quarter earnings season. As of Friday, analysts expect S&P 500 earnings to have fallen 6.4% in the quarter versus a year ago, a forecast that has weakened since July 1, according to IBES Refinitiv data. The US Consumer Price Index will also be a key event.

US500 technical analysis

A series of breaks of structure to the upside leaves the bull trend intact but a break of 4329 will leave a bearish outlook on the charts.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

AUD/USD edges higher as hot CPI inflation and hawkish RBA lift rate hike bets

The AUD/USD pair gathers strength to near 0.7035 during the Asian trading hours on Friday. The Australian Dollar edges higher against the US Dollar as hotter Australian CPI inflation data has bolstered expectations of Reserve Bank of Australia rate hikes.

USD/JPY meets support near 157.00

USD/JPY retreats for the third consecutive day on Friday, revisiting the 157.00 region before attempting some recovery as investors continue to assess the latest BoJ meeting, where the central bank left rates unchanged, as widely anticipated.

Gold sinks to fresh yearly lows despite risk-off mood as Fed rate hike bets weigh

Gold slips to fresh year-to-date lows on Friday. The metal struggles despite a risk-off mood across markets, as expectations of further Federal Reserve (Fed) interest rate hikes continue to dominate price action, leaving Gold on track to end the month in negative territory.

Ripple Price Forecast: XRP bulls defend $1.20 as sell-side pressure triggers liquidations

Ripple (XRP) trades around $1.25 on Friday, rising from a short-term support level established at $1.20. This minor upward correction follows a sharp sell-off, triggered amid reports of a hack attack on the Binance exchange that impacted approximately $6.3 billion. The attack drove the broader crypto market on edge, as Binance suspended both deposits and withdrawals to contain the situation.

BoJ recap: A pause for now... but Japan has entered a new inflation phase

The Bank of Japan left its short-term policy rate unchanged at 1.25% but delivered a distinctly hawkish message on the risk of an inflation overshoot. The decision passed by 8-1, with board member Takata dissenting in favour of an increase to 1.5%, while Governor Kazuo Ueda stressed that the Bank would continue adjusting policy as needed.

The 2% inflation target came from a throwaway remark. It now moves trillions

The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.