S&P 500; US Indexes Fundamental Daily Forecast – Investors Defending Weekly Low
The major U.S. equity indexes are rebounding shortly after the cash market opening on Friday after yesterday’s steep declines. Thursday’s sell-off actually put the Dow and the S&P 500 Index into 10% correction territory.
At 1436 GMT, the benchmark S&P 500 Index is trading 2608.24, up 27.24 or +1.06%. The blue chip Dow Jones Industrial Average is at 24109.57, up 249.11 or +1.04% and the tech-based NASDAQ Composite is 6863.27, up 86.11 or +1.27%.
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The Dow is being driven higher by Boeing and Goldman Sachs. Information technology and financials are giving the S&P 500 and NASDAQ an early boost.
The markets could continue to trend higher if U.S. Treasury yields remain in a holding pattern. Early Friday, the 10-year Treasury was slightly higher at 2.86 percent. A trade at the four-year high at 2.885 percent earlier in the week fueled the massive sell-off in the stock market.
If investors drive the 10-year through 2.885 percent then stocks could sell off violently later in the session.
In other news, E-commerce giant Amazon announced it is gearing up to launch a delivery service for businesses. This drove down shares of FedEx and UPS.
The slide in oil prices is also driving down the energy sector which is having a negative influence on the S&P 500 Index. Exxon Mobil is down more than 10 percent since oil prices have begun retreating.
Continue to monitor Treasury yields since they are controlling the price action.
March E-mini S&P 500 Index futures have to take out 2628.00 to sustain the rally. This price could act like a pivot the rest of the session.