- Wall Street is set to open higher
- US100 is again near this year ATH
- AMD - higher price targets for semiconductor company
Wall Street futures are expected to open higher at the beginning of the new week, with investors eagerly awaiting important Consumer Price Index (CPI) data and the Federal Open Market Committee (FOMC) decision on interest rates later in the week. The US500 index futures rise a 0.3% increase, reaching 4320 points, while the US100 (NASDAQ 100) trades 0.5% higher at 14630 points, which is close to this year's all-time high of 14680 points.
The financial markets are currently dominated by a positive sentiment, as investors anticipate the Federal Reserve to announce a pause in their cycle of interest rate hikes after a string of 10 consecutive increases. This sentiment has led to an appreciation of higher-risk equities, while the performance of major currencies has caused the dollar index to decline. The US100 (NASDAQ 100) has experienced modest gains, indicating a potential continuation of the bull market trend.
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The US100 index, currently priced at 14630 points, is displaying a strong upward trend, suggesting a robust bullish momentum. This is supported by the bullish signal from the Moving Average Convergence Divergence (MACD) indicator, with higher highs indicating a strong upward movement. The next potential resistance zone for the US100 index may be around 15000 points. However, if the price fails to reach this level a retracement to around 14300 points or even further down to 14000 points is possible.
Despite the weaker performance of the US100 index in 2022, this year has been the strongest since 1995. This may suggest that the market is experiencing a period of strong growth, potentially reaching bubble-like territory, where negative economic news fails to significantly impact the markets. Additionally, positive factors such as the hype around artificial intelligence (AI) can trigger substantial gains in the index. However, it is important to exercise caution and consider the possibility of market dynamics shifting or potential risks associated with such trends.
Company News:
- Advanced Micro Devices (AMD.US) rises as much as 2.9% as KeyBanc Capital Markets hiked its target price on the chipmaker’s stock to $150 from $110 as growth remained robust in May. Citi also weighed in with positive comments ahead of the company’s data center day.
- Biogen (BIIB.US) shares jump 1.6% after Leqembi, the Alzheimer’s drug being developed with Japanese firm Eisai, gained support from advisers to the US Food and Drug Administration. Analysts expect the drug to receive full FDA approval.
- Intellia Therapeutics (NTLA.US) shares jump 5.6% after the clinical-stage biotechnology company presented additional interim data from the Phase I/II study of NTLA-2002 in hereditary angioedema (HAE), showing a 95% mean reduction in attacks.
- Coinbase Global (COIN.US) Marathon Digital (MARA.US), and Riot Platforms (RIOT.US) lead cryptocurrency-exposed stocks lower as Bitcoin falls.
- Nasdaq Inc. (NDAQ.US) falls 9.6% after the firm said it will acquire Adenza from Thoma Bravo, a leading software investment firm, for $10.5 billion in cash and shares of common stock.
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