Monday was another bullish day for Wall Street, while equities quickly erased Friday’s losses, with all major US indices trading sharply higher.
On Monday, data showed that the US Services PMI for September slipped to 54.6just as expected, and is no lower than last month’s 55.0. However, the ISM Services survey rose to 57.8 against expectations of 56.2 and the 56.9 scored in August. So, Markit PMIs fell, and the ISM rose in September – both surveys from the same sector.
Moreover, Donald Trump has been discharged from the hospital, which was good news for the financial markets as uncertainty was cleared. However, his condition is still Not 100% ok, so some complications might still show up.
On Tuesday. the Fed’s Chairman Powell is among many Fed officials scheduled to give a keynote speech on the economic outlook this week. His speeches are usually followed by elevated volatility, especially in the stock market.
Additionally, the new round of the fiscal stimulus is coming, and investors are pricing in another inflationary wave. More stimulus, whether monetary or fiscal, should be bullish for equities.
Should the SP500 index climb above last week’s resistance of 3,400 USD, the medium-term uptrend would be confirmed, and the next target for bulls should be at 3.430 USD, before attacking the 3,500 USD threshold.
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Peter Bukov | Market Analyst
Peter comes from a background in corporate finance which began in 2013 when he completed the Corporate Finance Program at the University of Economics in Bratislava. He’s been actively involved in the market sector since 2008 and got his hands-on experience in trading in 2011.
His experience in finance and trading continues not only as a market analyst at Axiory Intelligence but also through his studies to obtain a degree in Capital Markets. The study is in line with MIFID II regulations and is under the supervision of the European Regulator ESMA, which strongly emphasizes ethics and morale in investing and working with a client.
In addition, Peter was awarded the title of ASCI from the CISI Educational Institute of England where he is an associate member and the Bloomberg Aptitude Test results ranked him among the top 4% worldwide two years in a row.
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