Next Day Prep: Geopolitical Relief Fuels Market Surge
A quick analysis of today’s market outlook and key trading opportunities to start your day.
Intro & Market Mood
Today’s market witnessed a roller-coaster ride driven by geopolitical relief, with the S&P 500 climbing back above 6,000 amidst contained conflict expectations post-U.S. strikes on Iranian sites.
Overnight Headlines
- WTI crude futures plunged 7% to $68.63/barrel on eased concerns of major oil supply disruptions from the Middle East.
- Tesla (TSLA) surged 8% after launching its robotaxi service, contributing to strong performance in the Consumer Discretionary sector.
Economic Announcements
Fed rate cut speculations gained momentum as Fed officials hinted at potential cuts, fueling market optimism. Data like flash PMIs and existing home sales showed stability and slight improvements.
Earnings Highlights
- FactSet (FDS) reported mixed earnings but impressed with robust Annual Subscription Value growth and client expansion.
- Key upcoming earnings: Carnival, Worthington Steel, AeroVironment, BlackBerry, FedEx, Wabash National.
Top Movers
Notable momentum in rate-sensitive sectors (Real Estate, Utilities, Financials), while semiconductors and mega-cap tech faced pressure. Energy sector lagged due to oil price collapse.
Quick Trade Ideas
- Continuation Breakouts: ARM Holdings, NET, RCL, GEV, and Spotify (SPOT) showing strong upward momentum with defined targets.
- Anticipation Setups: CVNA, VERV, DDOG, COIN, and URGN exhibiting potential for breakout moves with entry points and targets.
Key Takeaway
Tomorrow’s trading focus includes monitoring key index levels, Fed Chair Powell’s testimony on rate cuts, economic data releases (Q1 Current Account Balance, home prices, Consumer Confidence), and maintaining tight risk management amid mixed market sentiments.