Volatility anticipated for US markets
This week, expect some additional volatility in the US as a slew of important data releases hover in the horizon. Before we delve into that, we take a quick a look at some of the key observations this week. The Nasdaq 100, heavily influenced by tech stocks, continued its descent as earnings reports from major players like Tesla and Alphabet failed to impress. In stark contrast, the small-cap Russell 2000 showed resilience, managing to post solid gains despite broader market turbulence.
With the US market never one to give up its secrets too easily, the US S&P Composite PMI edged up in June, the strongest growth rate since April 2022. This suggests a steady expansion in economic activity. More striking was the advance estimate for US Q2 GDP, which accelerated, far surpassing the consensus and the previous quarter’s growth. Durable Goods Orders, excluding transportation, also rebounded, increasing in June after a decline.
Read more to discover how recent economic developments are reshaping trading strategies in this insightful article.
Disclaimer:
Here we discuss anticipated market volatility in the US due to upcoming key economic data releases and earnings reports. It highlights recent trends, such as declines in the Nasdaq 100 and resilience in the Russell 2000 and notes global economic developments including rate cuts in China and fluctuations in commodity prices. Upcoming economic indicators from the US, Europe, Australia, and Japan will be crucial in shaping market expectations and sentiment. Traders should be wary of the potential for sudden market shifts triggered by other political and economic developments, where proper risk management is vital.
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