As we approach the fall season, stocks have maintained great strength while looking poised for more gains in the near future. The S&P 500 reached as high as 4540s while the Nasdaq traded close to the 15700 area. The Dow Jones was lagging behind and remained in consolidation yet anything is possible at this point.
Technology played a role in the gains with Microsoft and Netflix jumping 1.3% while Apple gained about 3%. Double gains were experienced by Affirm Holdings, a company that partnered with Amazon to offer the buy now, pay later concept.
Despite the gains and positivity, risks remain including inflationary pressures and new Covid variants including the infamous Delta. Nonetheless, the global corporate environment, especially in the US, remains resilient and strong in the face of the many challenges that took place so far.
Looking ahead, stocks could remain range-bound as traders and investors remain sidelined ahead of Friday’s NFP release which includes the unemployment rate and the average hourly earnings. NFP is expected at 750K versus a previous figure of 943K while the unemployment rate is set to reach 5.2% versus a previous number of 5.4%. Another major figure is the ADP employment data set for Wednesday and expected at 620K versus a previous figure of 330K. Strong employment data could indicate that the recovery is on point but will not completely eliminate currently discussed and future risks.
A quick look at other markets shows a weakening Dollar with the Euro above 1.1800 while the British pound approaches 1.3800. The Dollar-Yen hovering under 110.00 while Gold moves towards 1820. Oil remains capped by the 69.50 area and currently trades around the mid 68s.
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