U.S. Stocks Rally for a Third Session, Bitcoin Gets Boost from Ruling

MARKET WRAP

Market Wrap: Stocks, Bonds, Commodities

• On Tuesday, U.S. stocks rallied for a third session:

• S&P 500: +64 points (+1.45%) to 4,497

• Nasdaq 100: +324 points (+2.15%) to 15,376

• Dow Jones Industrial Average: +292 points (+0.85%) to 34,852

• U.S. Labor Department's JOLTS report showed job openings fell to 8.83 million in July, lowest since March 2021.

• Conference Board consumer confidence index dropped to 106.1 in August (vs 116.0 expected), possibly impacting U.S. Fed rate hike expectations.

• U.S. 10-year Treasury yield sank 9 basis points to 4.112%, 2-year yield dipped below 5%.

• Top performing sectors: Automobiles (+6.62%), Semiconductors (+3.24%), Telecoms Services (+3.02%).

• Big-tech stocks surged, including Tesla (+7.69%), Nvidia (+4.16%), Alphabet (+2.72%), Meta Platforms (+2.66%), Apple (+2.18%).

• Best Buy (BBY) rose 3.86% after strong quarterly earnings and raised guidance.

• Bitcoin and related stocks surged due to a Federal court ruling favoring Grayscale Investments' Bitcoin ETF application:

• Bitcoin: +6.20% to $27,700

• Marathon Digital (MARA): +28.81%

• MicroStrategy (MSTR): +10.79%

• Coinbase Global (COIN): +14.91%

European stocks closed higher:

• DAX 40: +0.88%

• CAC 40: +0.67%

• FTSE 100: +1.72%

Commodities: Commodity prices climbed, U.S. WTI crude futures added $1.10 to $81.23 a barrel. Gold price increased $17 to $1,937 an ounce.

Market Wrap: Forex

• U.S. dollar index retreated to 103.43.

• EUR/USD: +66 pips to 1.0885.

• GBP/USD: +48 pips to 1.265.

• AUD/USD: +54 pips to 0.6483.

• USD/JPY: -76 pips to 145.78.

• USD/CHF: -60 pips to 0.8778.

• USD/CAD: -41 pips to 1.3558.

Forex Analysis

EUR/USD Intraday: Upside Prevails

• Pivot: 1.0840

• Preference: Long positions above 1.0840, targets at 1.0890 & 1.0915.

• Alternative: Below 1.0840, targets at 1.0820 & 1.0800.

• RSI indicates upward movement.

• 

GBP/USD Intraday: Bullish Bias Above 1.2610

• Pivot: 1.2610

• Preference: Long positions above 1.2610, targets at 1.2655 & 1.2680.

• Alternative: Below 1.2610, targets at 1.2585 & 1.2560.

• Consolidation might continue, but its extent should be limited.

• 

USD/JPY Intraday: Key Resistance at 146.35

• Pivot: 146.35

• Preference: Short positions below 146.35, targets at 145.65 & 145.30.

• Alternative: Above 146.35, targets at 146.70 & 147.00.

• Resistance at 146.35 likely limits upward potential.

• 

Dow Jones (CME) Intraday: Intraday Support Around 34475.00

• Pivot: 34475.00

• Preference: Long positions above 34475.00, targets at 35145.00 & 35440.00.

• Alternative: Below 34475.00, targets at 34300.00 & 34070.00.

• Next resistances at 35145.00 and 35440.00.

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(Note: Due to market volatility, some key levels might already have been reached.)