Indexes on Wall Street continue to rise following the NFP report. Both US500 and US100 are trading at new historical highs. The report strengthened expectations of Federal Reserve rate cuts, with swaps predicting a full two cuts in 2024. Speculation about a potential first cut in September is also growing. Investors will look for confirmation of this path in the upcoming CPI report next week and statements from FOMC representatives. Currently, markets are pricing in nearly a 75% chance of a rate cut in September.
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile appMarkets are currently pricing in a 75% chance of the first 25 bp cut at the September 18 meeting and a full two cuts by the December 18 meeting. Source: Bloomberg Finance LP
US500
US500 contracts are gaining 0.40% today, above the 5600-point level. The gains are supported by the largest companies, including Alphabet (+2.3%), Meta (+4.3%), and Amazon (+1.4%). From a technical analysis perspective, the nearest support level in the event of a correction is the channel of the recent consolidation in the range of 5500-5560 points.
Source: xStation 5
TNOTE
Contracts reflecting the prices of 10-year Treasury bonds (TNOTE) are also gaining today, returning above the key 110-point zone. The prices are supported by a short-term upward trend (blue dashed line), with the next level for bulls to overcome still being 111 points.
Source: xStation 5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.