A extra cautious temper as markets gear in the direction of Jackson Gap

Wall Avenue retreated yesterday with tech shares bearing the brunt of the blow, although small caps have been additionally decrease. That is placing a cease to the latest upside momentum as traders examine again in ready for extra clues from the occasions later this week.

The Nasdaq closed down by 1.5%, resetting the good points from final week. The drop additionally sees it fall again slightly below its 100-hour transferring common of 21,333, although it’s nonetheless holding above its 200-hour transferring common of 21,123. For some context, the index hasn’t fallen beneath each the important thing ranges since April. Discuss one-sided momentum, eh?

As we glance to the session forward, the chance temper stays cautious nonetheless. S&P 500 futures are down zero.three% with Nasdaq futures down zero.four%. Dow futures are additionally seen down zero.2% after the index closed flat in in a single day buying and selling.

That’s main European shares to additionally preserve a extra defensive temper after the constructive displaying yesterday. Each Eurostoxx and DAX futures are down zero.6% at the moment going into the session forward.

In FX, the greenback held firmer yesterday and is holding steadier at present as nicely. The adjustments are mild for probably the most half with solely the New Zealand greenback being hammered after the extra dovish RBNZ tilt right here.

When it comes to major occasions at present, we’ll have the UK CPI and Fed minutes to be careful for. However within the context of this week, all eyes stay on Fed chair Powell’s speech in Jackson Gap.

This text was written by Justin Low at investinglive.com.