News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Bearish
Wall Street
Bullish
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Join @ZabelinDimitri 's #webinar at 11:30 PM ET/3:30 AM GMT to find out how geopolitical risk will affect the markets in the week ahead. Register here: https://t.co/hsULxMNOtM https://t.co/26Vn8xNZHF
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Gold: -0.02% Silver: -0.10% Oil - US Crude: -0.24% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/k82jSelAG3
  • The US Dollar continues to show tones of reversal as Q3 winds down. Can buyers drive the currency through the Q4 open? Get your #currencies update from @JStanleyFX here: https://t.co/mnVvIOhtay https://t.co/H5xQXSalBf
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.43% 🇳🇿NZD: 0.20% 🇬🇧GBP: 0.18% 🇨🇦CAD: 0.03% 🇪🇺EUR: 0.02% 🇨🇭CHF: 0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/TtUEpT5jDK
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.63%, while traders in EUR/GBP are at opposite extremes with 64.46%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/uxUVKs9BeK
  • 10 out of 11 S&P 500 sectors ended higher on Friday, with half of the companies in the green. Information technology (+1.63%), consumer discretionary (+1.44%), utilities (+1.12%) were among the best performing ones, whereas energy (-0.26%) lagged. https://www.dailyfx.com/forex/market_alert/2020/09/28/Nasdaq-100-Futures-Extend-Gains-Hang-Seng-and-Nifty-50-May-Rebound.html https://t.co/eIecw9NQQD
  • The Hang Seng Index (HSI) has likely formed a bullish “AB=CD” pattern, with the “D” point found at around 23,080. A rebound from the “D” point may lead to more gains with an eye at 23,760 and then 24,200. https://t.co/ObmqqYa5P4
  • Wall Street Futures Update: Dow Jones (+0.39%) S&P 500 (+0.33%) Nasdaq 100 (+0.30%) [delayed] -BBG
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/UVvf51HiVP https://t.co/mkHo2v37as
  • #2020election polls continue to show Democratic nominee Joe Biden maintaining a strong lead #Trump Supreme Court nomination may throw a wrench into bipartisan stimulus talks #AUDUSD is trading at former resistance-turned-support. What happens if it breaks? https://www.dailyfx.com/forex/fundamental/article/special_report/2020/09/27/AUDUSD-Analysis-Ahead-of-Presidential-Debate-Supreme-Court-Nominee-Battle-.html
S&P 500 Sinks, Biden Leads Trump, China Releases New Chip Sector Plans

S&P 500 Sinks, Biden Leads Trump, China Releases New Chip Sector Plans

2020-09-03 23:00:00
Dimitri Zabelin, Analyst
Share:

S&P 500, Trump-Biden Spread, 2020 Presidential Election – TALKING POINTS

  • Markets contending with novel geopolitical risk as China announces new chip policy
  • Recent polling reports continue to show Biden in the lead with an average of 8 points
  • S&P 500 index testing mid-June uptrend after suffering the biggest loss since June 11

61 DAYS UNTIL THE US PRESIDENTIAL ELECTION

With 61 days to go until the presidential election, Biden continues to lead Trump – albeit at a modestly smaller margin – heading into the first presidential debate on September 29. Numerous polling agencies are showing varying degrees of difference, though the spread below is roughly in-line with the 8-point average found in RealClearPolitics’ data.

2020 Election Polling Data

S&P 500 Sinks, Biden Leads Trump, China Releases New Chip Sector Plans

Source: FiveThirtyEight

For additional political updates, be sure to follow me on Twitter @ZabelinDimitri.

China Semi-Conductor Chip Policy Another Risk Waiting After 2020 Election

While the presidential debate is the biggest, near-term election event to watch for, recent geopolitical developments between the US and China signal another headwind a new administration will have to sail against. On Thursday, Beijing announced plans to add a provision to the country’s 14th five-year plan for boosting the domestic production of third-generation semiconductors through 2025.

The measure comes in response to the Trump Administration’s efforts to curb China’s importation and use of US-based chipmaking technologies. Washington has even gone so far as to ban all chip suppliers from selling their goods to Asian tech giants like Huawei if the hardware being sold uses American equipment. Consequently, this has pushed Beijing to start rapidly developing its own chipmaking industry.

Following the election, regardless of which administration it is, policymakers will have to deal with the economic repercussions of US-led digital protectionism. In addition to the geopolitical strains that it causes, supply chain-oriented firms that rely on the uninterrupted movement of key inputs may suffer as they scramble to reposition themselves in a new international digital regime.

S&P 500 Analysis

After reaching a record-high, on Thursday, the S&P 500 had its biggest one-day drop since June 11. The index is now retesting an uptrend that was formed in mid-June. Breaking the slope of appreciation could send a chilling message about the benchmark’s near-term trajectory, potentially setting it up for an aggressive, short-term retreat. Selling pressure could encounter some friction at former resistance-turned-support at 3391.75.

S&P 500 Futures – Daily Chart

Chart showing S&P 500

S&P 500 chart created using TradingView

--- Written by Dimitri Zabelin, Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or @ZabelinDimitri on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES