US indices weighed down by weakness in tech stocks

Haresh Menghani FXStreet

• Recent bullish run hits a speed bump on concerns over US tax bill.
• Weakness in technology stocks also weighing on the sentiment.
• Dow/S&P poised for weekly gains, Nasdaq set to end on back-foot.

Major US equity indices opened with modest losses on the last trading day of the week, with a downturn in technology stocks weighing on investors' sentiment.

The highly-anticipated US tax overhaul bill hit a roadblock on Thursday after the Senate delayed voting and ruled that a fiscal trigger will not work under Senate rules. Renewed concerns over the fate of US tax reform plan kept investors on edge and seems to be the only factor stalling the recent bullish run.

During the opening hour of trade, the Dow Jones Industrial Average slipped around 35-points to 24,235, still poised for weekly gains of 3%. The broader S&P 500 Index lost nearly 3-points to 2,645 and was looking at over 1.5% weekly rise. Meanwhile, tech-heavy Nasdaq Composite Index continued with its relative underperformance, amid portfolio rebalancing, and fell over 30-points to 6,840, all set for a weekly loss of over 0.2%.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD holds firm near 1.1850 amid USD weakness

EUR/USD remains strongly bid around 1.1850 in European trading on Monday. The USD/JPY slide-led broad US Dollar weakness helps the pair build on Friday's recovery ahead of the Eurozone Sentix Investor Confidence data for February.

GBP/USD hovers near 1.3600 as UK government crisis weighs on Pound Sterling

GBP/USD moves sideways after registering modest gains in the previous session, trading around 1.3610 during the European hours on Monday. The pair could come under pressure as the Pound Sterling may weaken amid a fresh government crisis in the United Kingdom.

Gold remains supported by China's buying and USD weakness as traders eye US data

Gold struggles to capitalize on its intraday move up and remains below the $5,100 mark heading into the European session amid mixed cues. Data released over the weekend showed that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Fed expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Cardano steadies as whale selling caps recovery

Cardano (ADA) steadies at $0.27 at the time of writing on Monday after slipping more than 5% in the previous week. On-chain data indicate a bearish trend, with certain whales offloading ADA. However, the technical outlook suggests bearish momentum is weakening, raising the possibility of a short-term relief rebound if buying interest picks up.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.