Market Overview
The following is a partial recap of the market analysis shared during today’s morning Discord call.
Yesterday’s FOMC report was predictably hawkish and not what the market was hoping for; in conjunction with the expected interest rate hike by October of this year, it has contributed to a rise in bond prices. We also saw huge volatility in the U.S. market, with the S&P 500 going to a hair above 7470 points before bouncing back and finding support around 7540. So when President Trump signed an interim deal with Iran to end the war, the market took it very positively amidst all the day’s chaos. Today is also the closing day for a number of futures contracts, including but not limited to S&P 500 E-Mini, S&P Midcap E-Mini and Nasdaq 100 E-Mini.
Softwares
Software stocks took a hit yesterday, with Microsoft (MSFT) dropping by about 4%, getting close to previous swing lows, while Adobe (ADBE) failed to bounce and went down to weekly levels not seen since 2018. In its current predicament, Adobe needs to hold around the $200 level for it to be able to move higher.
From left to right: iShares Expanded Tech-Software Sector ETF (IGV), Microsoft (MSFT), and Adobe (ADBE).
Tech
The broader tech sector is also struggling as well, with semiconductors performing the best but still ending the day at a loss, while SpaceX (SPCX) saw its first red day, with around a 5% loss. It remains to be seen if they continue on the same trajectory, but it’s important to note that tomorrow is a public holiday in the U.S., so the last bit of volume for the week should come in today.
Left: Philadelphia Semiconductor Index (SOX), right: Space Exploration Technologies Corp. (SPCX).
Local Stocks
Valterra Platinum (VAL)
Valterra is on the watchlist as Berenberg upgraded it to buy, with a new target price of R1542, which is roughly 10% higher than before.
Glencore (GLN) & Anglo American Plc (AGL)
Berenberg also downgraded Anglo American to hold, with a new target price of 37.25. Meanwhile, Glencore wasn’t directly upgraded, but it did receive praise from Berenberg, which could cause it to go up during the day.
Left: Glencore (GLN), right: Anglo American plc (AGL).
Economic Data & Ex-Dividends
Today’s most interesting events are the Swiss National Bank interest rate decision at 09:30 and the Bank of England interest rate decision at 13:00.
Ex-Divsidends
Companies below are set to go ex-div today
Economic Data
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