Stock Market Update Wednesday July 31, 2024 The technology sector rebound, bolstered by AMD's strong quarterly earnings, is proving beneficial for broader US equity indices and the overall risk sentiment. Industrials reached new all-time highs, while Financials climbed to their highest levels in two years. Both Utilities and Communication Services sectors broke out to new yearly highs, and Healthcare is poised for a potential multi-year breakout.
Significant technical movements occurred across equity, fixed income, and foreign exchange markets on Wednesday, coinciding with a pivotal policy shift from the Bank of Japan (BOJ) and a more dovish tone from the Federal Open Market Committee (FOMC).
The S&P 500 and Nasdaq 100 indices experienced a sharp rally, breaching last week's highs and potentially indicating further bullish momentum in August. While some near-term consolidation may occur following Wednesday's substantial move, the recent market decline from mid-July appears to have found its bottom.
US Treasury yields experienced a sharp decline across the curve, a typical occurrence during FOMC weeks. This decline, coupled with it being the last trading day of the month, could be fueling the positioning needs of index funds. Additionally, the policy shift in Japan may have further bolstered Treasuries through the USD/JPY currency pair.
Need a close above the purple line for the trend to continue higher.
Down trend continues purple line is strong support level.
Oil had a big move up due to geopolitical reasons.
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