🐔 🌮 📊 How will Wall Street's TACO (Trump Always Chickens Out) theory meet CPI reality?Follow CPI Data

Fed Speeches In focus, As Apple Pulls Markets Down

Published 07/09/2019, 05:32 AM

Market Focus

A corrective pullback is developing on the revaluation of the Fed's monetary policy. Friday's Nonfarm Payrolls are still influencing the investors' sentiments. This report forced market participants to doubt that the Fed would take aggressive measures towards reducing interest rates in July. As a result, key stock indices are losing ground for the second day in a row. On the contrary, the dollar is in demand.

It is important to note that several speeches by the Fed's representatives are set to take place this week. These are going to affect the virtue of the market of making additional adjustments to the investors' sentiment. Today, Jerome Powell will talk about the stress testing, while tomorrow he will present a semi-annual monetary policy report to Congress. Meanwhile, the FOMC minutes will also be published that day. In all of these statements, market participants will look for hints of the early rate cut readiness and will also try to understand the current position of the Fed in assessing the latest Nonfarm Payrolls report.

Stocks

Futures on the S&P 500 fell for the second day in a row, retreating by 1.3% from historic highs around 3000 and settling at 2963. Revaluation of market participants' expectations launched a process of profit-taking after touching the peak levels a few trading days ago. Asian indices are retreating more actively, losing more than 3% of the gained positions at the beginning of last week.

Futures on the S&P500 fell for the second day in a row

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.

EUR/USD

The single currency is reaching close to 1.1200. The pair was rejected at these marks on Friday but is currently running near them, in anticipation of subsequent signals from the Fed. At the same time, the dynamics have shifted downwards. From the side of technical analysis, each subsequent intraday high has been lower than the previous one since July 1– reflecting the prevalence of sellers. A quiet, slow trend could continue on a course until it reaches 1.1100, where EUR/USD has received support several times since April. This promises to be an important fight between bulls and bears, and there are more advantages for the latter so far.

EURUSD shifted downwards

Apple (AAPL)

Apple Inc (NASDAQ:AAPL) shares lost more than 2% at the end of the Monday session, pulling the key US stock indices down, as well as causing pressure on the supplier companies shares in Japan and China. The reason for the weakening is the revision of recommendations to sell shares on possible problems with the new iPhone model demand. This failure is still difficult to consider as the beginning of a big sale. From the side of technical analysis, stocks remain above MA(50) and MA(200), as well as below the overbought area. Nevertheless, the general alert tone of investors may put pressure on the quotes.

Apple  shares lost more than 2% on Monday


The FxPro Analyst Team

Which stock should you buy in your very next trade?

With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities.

In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record.

With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.

Unlock ProPicks AI
Read Next

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.