- S&P 500 unofficially closes up 50.30 points, or 1.52%.
- Dow Jones unofficially closes up 384.29 points, or 1.41%.
- NASDAQ unofficially closes up 197.47 points, or 1.81%.
US stocks ended sharply higher on Monday as investors piled back in on what is otherwise expected to be the first monthly decline since March of this year.
End of month flows and portfolio rebalancing could be what has driven the spike in the benchmarks on Monday, combined with hopes of stimulus talks and possible progress to end the stalemate between the Democrats and Republicans, as telegraphed in this week's weekly forecast.
However, the rally was a lot stronger than anticipated.
Across the pond, there was also a positive air of expectation around the UK-EU trade talks which may have been playing their role on wall Street.
Also, the European Central Banks president Lagarde hinted at more easing if necessary.
Additionally, regional Fed data continued to point to a resilient manufacturing sector.
Consequently, all combined, the Dow Jones Industrial Average rose 410.1 points, or 1.51%, to 27,584.06, the S&P 500 added 53.14 points, or 1.61%, to 3,351.6 and the Nasdaq Composite put on 203.96 points, or 1.87%, to 11,117.53
The third quarter also draws to a close on Wednesday. Both the S&P and the Nasdaq have headed for their best two-quarter winning streaks since 2009 and 2000, respectively, despite September's expected loss.
As for data, the Dallas Fed Manufacturing Index increased from 8.0 to 13.6, soundly beating expectations.
''Production, capacity utilisation and new orders all rose, as did employment and prices paid and received. The index is sitting well above its 2019 average, though we’ll have to wait to see where things settle once the catch-up flurry has passed,''
analysts at ANZ Bank explained.
S&P 500 technical analysis
In the start of the week's analysis, Monday's spike had already been forecasted:
-637368336314511137.png)
However, the move exceeded expectations and the H&S pattern is nullified.
-637369226311753710.png)
The price is meeting resistance a higher resistance this juncture.
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.