Market Highlights: Post-Holiday Gains, Tech Surges, and Forex Moves

Market Wrap: Stocks, Bonds, Commodities

On Tuesday, U.S. stocks posted gains after the Christmas holiday. The Dow Jones Industrial Average rose 159 points (+0.43%) to 37,545, the S&P 500 climbed 20 points (+0.42%) to 4,774, and the Nasdaq 100 was up 101 points (+0.60%) to 16,878.

The U.S. 10-year Treasury yield declined 2 basis points to 3.893%.

Energy (+0.87%), real estate (+0.78%), and industrials (+0.73%) stock sectors gained the most.

Intel Corp (INTC) jumped 5.21%. The chip maker announced plans to invest $25 billion in Israel as it has won $3.2 billion in incentives from the Israeli government.

APA Corp (APA) rose 3.70%, Advanced Micro Devices (AMD) climbed 2.73%, Dollar Tree (DLTR) gained 2.53%, and Best Buy (BBY) was up 2.29%.

On the other hand, Norwegian Cruise Line (NCLH) fell 2.86%, Carnival Corp (CCL) dropped 1.69%, Airbnb Inc (ABNB) declined 1.48%, and American Airlines (AAL) was down 1.40%.

Nike (NKE) was little changed after sliding 11.83% last Friday.

U.S. data showed that core personal consumption expenditure (PCE) price inflation slowed to 3.2% on year in November (vs 3.4% expected). Durable goods orders saw a significant increase of 5.4% on month in November (vs +1.8% expected).

New home sales experienced a sharp decline of 12.2% on month in November (vs +1.2% expected).

The Chicago Fed national activity index rose to 0.03 in November (vs 0.20 expected), and the Dallas Fed manufacturing index improved to -9.3 in December (vs -20.5 expected).

Oil prices remained firm amid further attacks on ships in the Red Sea by Yemen's Houthi militia. U.S. WTI crude-oil futures increased $2.01 (+2.70%) to $75.57 a barrel.

Gold price added $7 to $2,059 an ounce.

Market Wrap: Forex

The U.S. dollar index fell to 101.44 amid muted trading volumes as most major markets were still closed for a holiday Tuesday.

EUR/USD rose 30 pips to 1.1045, the highest level in over four months.

USD/JPY added 7 pips to 142.47.

GBP/USD gained 23 pips to 1.2722, and AUD/USD climbed 25 pips to 0.6824.

USD/CHF declined 23 pips to 0.8532, and USD/CAD dropped 65 pips to 1.3203.

Bitcoin failed to secure the level of $44,000 over the weekend while sliding to test support at $42,000.

Technical Analysis: Dow Jones (CME)

• Intraday:The upside prevails.

• Pivot:37720.00

• Preference:Long positions above 37720.00 with targets at 38010.00 & 38190.00 in extension.

• Alternative:Below 37720.00 look for further downside with 37580.00 & 37440.00 as targets.

• Comment:The next resistances are at 38010.00 and then at 38190.00.

Technical Analysis: EUR/USD

• Intraday:Bullish bias above 1.1020.

• Pivot:1.1020

• Preference:Long positions above 1.1020 with targets at 1.1055 & 1.1070 in extension.

• Alternative:Below 1.1020 look for further downside with 1.1005 & 1.0990 as targets.

• Comment:Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.

Technical Analysis: GBP/USD

• Intraday:The upside prevails.

• Pivot:1.2700

• Preference:Long positions above 1.2700 with targets at 1.2745 & 1.2760 in extension.

• Alternative:Below 1.2700 look for further downside with 1.2680 & 1.2665 as targets.

• Comment:Technically the RSI is above its neutrality area at 50.

Technical Analysis: USD/JPY

• Intraday:Bullish bias above 142.30.

• Pivot:142.30

• Preference:Long positions above 142.30 with targets at 143.00 & 143.20 in extension.

• Alternative:Below 142.30 look for further downside with 142.10 & 141.90 as targets.

• Comment:A support base at 142.30 has formed and has allowed for temporary stabilization.

register with Everything Trading for comprehensive insights.

Subscribe Now at https://everythingtrading.com