Buying S&P 500 As Trump Trade Resumes And Stocks Surge After the Scare

US stock markets were down in pre-market, but made a major jump early in the session, indicating the end of the retreat and the restart of the uptrend, so we decided to open a buy S&P 500 trade.

During the European trading session, escalating war threats weighed heavily on market sentiment, causing European equities to tumble. Although some losses were recouped, the day ultimately ended on a negative note. Later in the U.S. session, sentiment improved, with markets demonstrating resilience despite lingering economic uncertainty. Investors shifted focus toward consumer-defensive stocks, signaling a cautious but optimistic outlook.

S&P 500 Chart Daily – The 20 SMA Is Holding

Tech stocks continued to show mixed performance, reflecting sector-specific challenges, while the retail sector stood out with strong gains, indicating solid consumer spending. Walmart, in particular, had a standout day, with shares surging over 3% following an earnings report that exceeded forecasts. The report highlighted growth in both revenue and comparable sales, bolstered by reduced Thanksgiving basket prices, increased online orders with faster delivery, and gains in market share. Walmart shares closed at a record high, marking an impressive 65% rise for the year.

Closing Levels for Main US Stock Indices

• Dow Jones Industrial Average: Down -142 points (-0.3%) to 43,248.
• S&P 500 Index: Up +8 points (0.1%) to 5,901.
• NASDAQ Composite Index: Gained +90 points (0.5%) to 18,882.

U.S. indices are showing a mixed performance but have rebounded from earlier lows as European traders closed up for the day. In premarket trading, the Dow had dropped over 500 points, the S&P was down by 50 points, and the NASDAQ was down by 200 points. However, the NASDAQ and S&P have since recovered and are now trading higher, erasing those earlier declines.

Performance for European Bourses

• German DAX: Fell -128.88 points (-0.67%) to 19,060.32. Session low: 18,812.53.
• France’s CAC 40: Declined -48.59 points (-0.67%) to 7,229.65. Session low: 7,029.91.
• UK’s FTSE 100: Dropped -10.29 points (-0.13%) to 8,099.03. Session low: 8,052.02.
• Spain’s IBEX: Lost -86.39 points (-0.74%) to 11,588.41. Session low: 11,428.30.

S&P 500 Live Chart