US stocks catch their breath after recent record-setting rally

Haresh Menghani FXStreet

US stocks extended Trump-inspired record-setting run, with all the three major indices hitting fresh intraday record high levels.

Thursday's up-move was backed by trio of upbeat US economic data points, which continues to support optimistic views for a stronger US economic growth. Data released on Thursday showed, weekly jobless claims rose less-than-expected and remained closer to multi-year low levels. Meanwhile, the Philly Fed manufacturing index soared to the highest level since early 1984 and an increase in permits pointed towards the underlying strength in the housing market.

The initial up-move, however, lacked follow through traction and all the three major indices moved back to yesterday's closing level. On Wednesday, all the indices closed at record high levels for the fifth consecutive session in wake of the US President Donald Trump's promise to unveil a "phenomenal" tax plan and hawkish outlook on the US economy from the Fed Chair Janet Yellen.

Yellen's comments also pointed towards possibilities of additional Fed rate-hike action, sooner-rather-than-later. Should market players start building on expectations for a March rate-hike action, it would endanger the current strong bullish sentiment surrounding the markets.

1. R3 2362.4133
2. R2 2351.1667
3. R1 2344.6733
PP 2333.4267
1. S1 2326.9333
2. S2 2315.6867
3. S3 2309.1933

Author

Haresh Menghani

FXStreet

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

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