The Market Brief
Hey team. U.S. Indexes edged higher during early trading with hopes for trade negotiations between the U.S. and China lifting investor’s sentiment.
Let’s re-cap last session and see what’s next!
Impact Snapshot
🟥 Flash Manufacturing PMI - 9:45am
🟥 Beige Book - 2:00pm
Key Earnings: BA 0.00%↑ T 0.00%↑ IBM 0.00%↑
Macro Viewpoint
U.S. stock index futures surged on Wednesday following reports that President Donald Trump had eased tensions by stepping back from his threats to dismiss the Federal Reserve chairman and expressed renewed optimism about reaching a trade agreement with China.
Stocks finished higher Tuesday and erased Monday’s losses. This was driven by the combination of upside earnings surprises and tariff headlines in Japan/India negotiation, as well as “setting the stage” for trade talk with China.
Market activity remained subdued, with total volumes down 31% versus the 20-day moving average. On a positive note, the heavy selling from large Asset managers sell tickets that we observed last week, and, to a lesser extent on Monday didn’t return on Tuesday.
There were some early signs of renewed interest in megacap names, but overall buying remains limited in scope. We're still waiting to see longer-duration investors step in and start accumulating single-name equities.
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