US stock markets moved higher during the first trading session of a new week. So far it looks like markets are completely ignoring the FOMC taper that is expected to be announced tomorrow in the evening. Accelerating inflation does not look to be having a big impact on the market valuations either as investors are focusing on the ongoing Q3 earnings season. Almost 300 members of the S&P 500 index have already reported results for the third quarter and results of more than 80% of those companies have beat expectations. Supply chain issues are a common theme during earnings presentations and a big share of companies hint at the negative impact of those extending into early-2022.
While all major US indices gained yesterday, it was the small-cap Russell 2000 (US2000) that stood out. The index rallied a massive 2.65% yesterday and climbed to the highest level since mid-March, just a touch below all-time highs (2,368 pts). US2000 broke above the 2,310 pts resistance zone yesterday, that marked the upper limit of the triangle pattern. A textbook range of the upside breakout from this pattern hints at a potential move above the 2,500 pts mark, over 6% above the current market price. FOMC meeting tomorrow is expected to a have a big impact on equity indices, including US2000.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
