09:36 July 13, 2023
- SP500 at new yearly highs, CFD contracts above 4500 points
- Wall Street gains on deteriorating macro data
- Will Earnings Season Revise Market Expectations?
In trading yesterday, Wall Street was in a buoyant mood after the release of CPI data, which in short came in well below previous readings and analysts’ expectations. When looking at the numbers realistically, however, such a low value was possible due to the high starting point of the past year. It seems unlikely that this pace of decline will be sustained, although the direction, ie another drop, is not ruled out.
Wall Street is now entering Q2 2023 earnings season, which will likely set investor sentiment for the next few weeks. Earnings season kicks off on Friday with the biggest banks including JPMorgan Chase & Co, Citigroup Inc. and Wells Fargo & Co. Overall, analysts’ expectations are quite high and the banking sector is expected to post earnings growth of up to 11% yoy under the influence of high interest rates. In this context, it can serve both as fuel for further growth and as a catalyst for correction in the event of disappointment.
Buoyed by the low CPI numbers, investors pushed the SP500 index to new yearly highs around 4472 points, while futures contracts on the XTB platform (US500) broke through the 4500 point mark and the index is currently trading at 4520 points. From a technical point of view, we can observe the next resistance zone at 4550-4580 points. The support zone is now 4500 points after yesterday’s breakout and further 4400 points. source: xStation5 by XTB
ACTION at the TESTSIEGER 2023:
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