Labor Day in the US brings lower volatility on CFDs

Today, markets in the USA are closed due to the Labor Day. Trading in underlying instruments is not taking place, and stock exchanges remain closed. As a result, volatility on CFD contracts is reduced, but despite this, the US500 and US100 are showing modest gains today, fueled by strong gains in China. In the coming days, speeches from FOMC members will be worth paying attention to, as markets will try to price in the odds of further interest rate hikes. Following recent macroeconomic data, the chances of a rate hike at the September meeting are low, and the likelihood of the last expected hike this year is also declining. Before the FOMC meeting, we will also have the publication of the CPI inflation in the USA next week, which will be the last significant report in the eyes of the Fed before the decision.

US500

CFD contracts on the main SP500 index are gaining 0.10% today and are trading around 4530 points. After the last deeper drop, the US500 also reacted with strong gains, which stalled around the line of the previous upward trend (blue line). Despite this, the index price remains above the support level at 4500 points, which may indicate potential for further gains after a moment of consolidation. The next resistance levels are around 4570-4600 points. Otherwise, if selling pressure pushes the price below 4500 points, we may see a retest of 4378 points.

source xStation 5

US100

CFD contracts on the Nasdaq 100 technology company index are showing slightly larger gains today, up 0.30% to 15570 points. This time, US100 index is in a better technical position than the US500, as the recent drops did not manage to break the upward trend line. Also, after the last correction, the index managed to bounce back above where the declines started. The US100 is not far from this year's highs around 16000 points. Therefore, staying above the support line at 15400 points increases the likelihood of another attempt to break this year's highs.

source xStation 5