Euro and US Stocks Positive on Biden’s Retreat, Nvidia 1.75% Up

Quiet Session Amid Summer Financial Markets Slowdown

Today was a quiet trading session as the economic calendar signals the onset of the summer slowdown. With no significant economic releases scheduled, both today and tomorrow offered traders little to work with. The Japanese yen rose early, reflecting a risk-off sentiment, while commodity currencies fell. However, European stock markets closed higher. There wasn’t a substantial catalyst for these moves, as traders are still adjusting to the news that Biden has withdrawn from the presidential race over the weekend. The dollar held steady in international markets with minimal movements, but this did not deter stock markets, especially the major US indices.

European Indices Close with Gains

Major European indices closed with gains, led by Germany’s DAX. Meanwhile, US equities remained higher but have retreated somewhat lower. A snapshot of the closing levels shows the following:

• German DAX: +1.35%
• France CAC: +1.20%
• UK FTSE 100: +0.59%
• Spain’s Ibex: +0.62%
• Italy’s FTSE MIB: +1.09%

As European traders wrapped up their day, US stocks remained higher but traded near session lows:

• Dow Industrial Average: +15 points (0.04%) at 40,300
• S&P Index: +28 points (0.48%) at 5,535
• NASDAQ: +117 points (0.70%) at 17,850

US Indices and Moving Averages

The S&P 500 stayed below its 200-hour moving average of 5,570 points, peaking at 5,563 points today. The Nasdaq index briefly surged above its 100-day moving average (SMA) of 17,922 points but has since fallen below that level. The inability to break higher has been frustrating.

Technology and Communication Sectors Drive Positivity

The stock market remains cautiously optimistic, driven mainly by the technology and communication sectors. Investors are closely watching these sectors, finding comfort in their performance amidst global economic uncertainty. The resilience shown by tech giants indicates sustained momentum that could weather minor market fluctuations. The technology sector, in particular, showed strength with significant gains:

• Microsoft (MSFT): +1%
• Apple (AAPL): +1.40%

The semiconductor industry also enjoyed a positive spotlight, with Nvidia (NVDA) leading with a 1.75% increase. Communication services saw substantial gains as well, led by:

• Google (GOOG): +1.60%
• Meta (META): +2.20%

These gains demonstrate high investor confidence in the sector’s continued growth potential.