Big tech rebound ahead of earnings, Oil slips

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Week started on a bullish note in Europe and the US as Jow Biden’s decision to leave the presidential race didn’t impact the market mood.

The S&P500 rebounded 1% following its worst week since April on a Big Tech selloff and on rising worries that a second term for Donald Trump in the White House would worsen the global trade relations. Nasdaq 100 gained more than 1.50% as Magnificent 7 climbed 2.5% led by a nearly 5% jump in Nvidia and a more than 5% jump in Tesla. Tesla and Google are due to report earnings today after the bell, and their results – or the reaction to their results – could shift the wind in either direction.

In the same context, Mc Donald’s is also looking to extend its $5 value meal in most Us markets as they think that the deal boosts traffic in its stores. All encouraging news for your central bankers. FX, bonds and energy The US 2-year yield consolidates near the 4.50% level, the 10-year yield is sitting close to 4.20% and the US dollar index remains offered near its 200-DMA. But the USD weakness is countered by higher expectations of rate cuts from other major central banks.

 

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