US Stock Futures:
Trading around the flatline on Friday
Followed a loss the day before after Chair Powell adopted a more hawkish tone
Powell stated that the Fed is prepared to raise interest rates further if necessary
Easing some bets of a rate cut next year
Awaiting additional comments from other Fed officials throughout the day
Market Dynamics:
Monitoring key economic reports scheduled for next week, including the CPI report, for further insights into the interest rate outlook
Earnings season continues, with Diageo losing about 14% in premarket trading after warning of weaker profit and sales
Trade Desk sank about 25% after offering weak sales guidance
Weekly performance: S&P 500 down nearly 0.3%, Dow Jones fell 0.5%, Nasdaq up 0.3% so far
Currency and Interest Rates:
Dollar index held above 105.5, set to finish the week higher
Federal Reserve officials push back against speculations of already peaked US interest rates
Powell: Fed “not confident” it has done enough to bring down inflation
Fed Governor Michelle Bowman and Minneapolis Fed President Neel Kashkari also signal potential for further rate hikes
Weekly jobless claims fell by 3K to 217K, in line with expectations
US Treasury Yield:
Yield on US 10-year Treasury note steadied around 4.6% on Friday
Powell’s remarks on potential further tightening if needed
Fed’s recent decision to keep interest rates unchanged and investors’ close monitoring of new auctions
Treasury Department sold $24 billion in 30-year bonds, bid-to-cover ratio lowest in almost two years
Upcoming US CPI report expected to provide crucial updates on inflationary pressures
E-mini S&P 500 PerspectiveThe E-mini S&P 500 is currently trading with gains of about 0.1% around 4366. In the previous session, it closed with a double distribution volume structure. The specific low volume area could potentially be filled or act as a selling area, while the lower region might be targeted for absorption purposes. Additionally, the market formed an outside bar, indicating a possible shift in market dynamics towards balance.The current situation, with a slightly lower dollar and negative volatility, may provide some support to the market at this time.(Click on image to enlarge)More By This Author:
