Market Recap

Wall Street gained for the second straight day (DJIA +0.62%; S&P 500 +0.63%; Nasdaq +0.84%), as US Treasury yields took a breather despite a hawkish takeaway from the Jackson Hole Symposium. Both the US 2-year and 10-year yields cooled by around 5 basis-point (bp) overnight after touching their recent highs. The VIX has also hit its two-week low, potentially as hedging bets unwind from greater clarity on the Federal Reserve (Fed)‘s policy outlook. Amid the quiet economic calendar to start the week, market focus will now turn to a series of macro data ahead to justify whether a November rate hike from the Fed is warranted.

Today’s schedule will leave Germany and US consumer confidence data on watch, along with the US Job Openings and Labor Turnover Survey (JOLTS), where further moderation in US July job opening numbers is expected (9.465 million forecast versus 9.582 million prior). The US S&P/Case-Shiller home price index will be in focus as well, with US home prices expected to mark its fourth straight month of year-on-year decline (-1.3% forecast versus -1.7% prior).

Perhaps one to watch may be the Russell 2000, which has been attempting to defend its 200-day moving average (MA) over the past week. Further upside may validate a bullish crossover on its moving average convergence/divergence (MACD) on the daily chart, with immediate resistance to overcome at the 1,900 level. On the broader scale, the index remains stuck in a long-ranging pattern since April 2022, with any move above the 1,900 level potentially leaving its upper bound at the key psychological 2,000 level on watch for a retest next.

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