The US equity market had a mixed performance last week, with the S&P 500 index falling by 0.96% and the Dow Jones Industrial Average declining by 2.6%. However, the Nasdaq 100 managed to secure a slight gain of 0.14% due to positive movements in the technology sector.
Economic indicators, such as the decline in durable goods orders and the modest decrease in consumer sentiment, have contributed to the cautious sentiment in the market.
New York Community Bancorp and major financial institutions like Morgan Stanley and Goldman Sachs experienced declines, while technology giants like Microsoft, Alphabet, Meta, and Amazon saw gains.
The upcoming earnings season for tech companies is highly anticipated and expected to provide insights into the health of the sector.
The upcoming non-farm payrolls report is also generating considerable interest, with robust job figures alleviating concerns about a delayed response from the Federal Reserve.
The interest rate market is currently pricing in a 95% chance of a 25 basis point cut by the Federal Reserve in November.
Technical analysis suggests that the Nasdaq 100 has potential for a breakout towards higher levels, but a sustained break below support levels could signal a deeper decline. Similarly, the S&P 500's performance has been lackluster, and a break below support levels could indicate a deeper decline.
As investors navigate through these mixed signals and anticipate key economic data and earnings reports, they remain vigilant in weighing the implications on their investment strategies.