The US equity markets rebounded from Monday's modest losses and posted solid gains during opening hour of trade on Tuesday, with tech-heavy Nasdaq Composite Index hitting fresh intraday record highs.
At the time of writing, the Dow Jones Industrial Average added over 60-points to 20970, while the broader S&P 500 Index rose nearly 8-points to 2380. Meanwhile, Nasdaq Composite Index gained around 22-points and climbed to 5,922.
Emmanuel Macron's strong performance in the first French Presidential debate helped ease political uncertainty and boosted investor sentiment.
This coupled with a rebound in oil prices, with WTI crude oil holding comfortably above $49.00/barrel mark in wake expectations that an OPEC output cut deal would be extended beyond June, further collaborated towards bullish sentiment surrounding riskier assets - like equities.
Investors on Tuesday will keep a close eye on speeches by Kansas City Fed's Esther George and Cleveland Fed's Loretta Mester for fresh clues over the Federal Reserve's near-term monetary policy outlook.
Technical outlook
Carol Harmer, Founder at charmertradingacademy.com notes, "Nas has Double Topped...we are selling this today as the price is diverging from the indicators therefore a bearish signal...........the weekly charts have been seriously overbought all year and we have to really do something soon to take out 5430 because if we fail we are going to see 5360 first with more potential for 5295...So we really are at quite critical levels in the US markets...and they need to move to the upside...and fast....to take off this imminent downside pressure...Our sell will be when Cash opens and if it is below 5430...stops will then be quite tight at 5450....."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.