US Equity Analysis: Nasdaq Dip Buying Possible, DJIA Eyes Topside Target
US Equity Analysis and News
Despite the Trump administrations announcement of $200bln worth of tariffs on China, risk assets are unfazed with S&P 500 futures pointing to higher open at 0.2%. Alongside this, the tariff rate is to be set at 10%, as opposed to 25%, consequently taking the sting out of the latest round of tariffs. The S&P 500 continues to hover around the bullish 2889-2899 value, suggesting that there is scope for further upside. Consequently, the outlook remains modestly bullish.
Dow Jones Industrial Average
DJIA futures slightly firmer with gains of 0.2%. Risks are skewed to further upside with the index holding above the 26048 level, while the topside target is at 26335. The index continues to play catch up relative to the record highs seen in other US indices (S&P 500)
Nasdaq 100 futures are outperforming this morning (+0.3%) following reports that tech giant Apple, are to avoid US tariffs on smartwatches and earbuds. The 7390-7451 pivot area provides key support for the index, which may present an opportunity for dip buyers back towards 7540-7603. However, a break below opens up the potential for a move towards 7265.
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--- Written by Justin McQueen, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.