Nasdaq 100, Dow Jones, S&P 500 News: CautiousTrade After 4-Weeks of Gains Ahead of OPEC+, PCE Report

Highlights

• Slight dip in Dow, S&P 500, and Nasdaq futures.
• Treasury yields stabilize; investors await key data.
• Oil prices steady; focus on upcoming OPEC+ meeting.

Wall Street’s Outlook Amid Mixed Signals

Wall Street is set to begin a new week on a cautious note, with stock futures marginally lower, following four consecutive positive weeks for the equity market. Dow Jones Industrial Average futures edged down by 0.08%, while S&P 500 and Nasdaq 100 futures saw declines of 0.08% and 0.07%, respectively.

Last Week’s Market Performance

The previous week marked a bullish phase for major indexes. The Dow advanced 1.27%, the S&P 500 rose 1.00%, and the Nasdaq Composite increased by 0.89%. The Russell 2000 also saw gains, rising 0.54%.

Economic Indicators and Treasury Yields

As U.S. Treasury yields stabilize, investors await key economic data that could influence the Federal Reserve’s monetary policy. The 10-year Treasury yield slightly rose to 4.4861%, with the 2-year yield also experiencing a marginal increase.

Oil Market Dynamics Ahead of OPEC+ Meeting

Oil prices remained steady with Brent crude maintaining above $80 per barrel. The market’s focus is on the upcoming OPEC+ meeting, where discussions about extending supply cuts into 2024 are anticipated. Despite a temporary dip last week, expectations of a compromise among OPEC+ members, especially regarding production targets for African producers, are high. The OPEC+ decision is expected to have a major impact on energy sector stocks.

Short-Term Market Forecast

With Wall Street coming off a strong performance streak, attention shifts to new economic data releases, including the October personal consumption expenditures price index and new home sales data.

Investors are evaluating these indicators for insights into the economy’s response to the Fed’s rate hikes and the broader outlook for monetary policy. The market remains watchful for any signs of a shift in the Fed’s stance, especially ahead of the last policy meeting of the year.

Technical Analysis

The E-mini S&P 500 Index futures are currently trading at 4564.50, positioning just above the minor support level of 4562.50. This price is significantly above both the 200-day and 50-day moving averages, set at 4300.73 and 4372.79 respectively, indicating a strong bullish trend.

The index’s current standing above the main support level of 4494.00 further reinforces this bullish sentiment. In the absence of specified resistance levels, the primary focus is on the asset’s relationship with its moving averages and support levels.

Overall, the market sentiment for E-mini S&P 500 Index futures appears bullish, given its position relative to key moving averages and support points.