U.S. stock markets rebounded after two consecutive days of declines led by technology stocks, following concerns over the rapid pace of artificial intelligence-driven gains. Gold prices continued their upward trend as traders reduced bets on further Federal Reserve rate hikes.
The MSCI Asia-Pacific index rose 1.1%, with the number of gainers more than double that of decliners. All 11 sub-sectors of the benchmark index advanced. The futures contract linked to the Nasdaq-100 index, which is dominated by technology stocks, gained 0.6%. Benchmark stock indices in the Chinese mainland, Hong Kong, and Japan all rose, driving regional equities higher overall this week.
Tim Moey, chief stock strategist for Asia-Pacific at Goldman Sachs, said on Bloomberg Television: “We still see very strong fundamentals, and the market remains undervalued. Profit prospects for memory stocks and the entire AI hardware supply chain continue to look bright.”
In a few weeks, U.S. tech giants will release their quarterly earnings reports, putting the market to a “true test” as the data reveals their profitability, capacity demands, and future semiconductor needs.
Data released by the U.S. Bureau of Labor Statistics on Thursday showed that nonfarm payrolls increased by 57,000 last month, while revisions to the previous two months’ figures were downward, dampening the positive impact of recent strong data. The unemployment rate fell to 4.2%, and the labor force participation rate declined significantly.
The U.S. labor market cooled in June, further strengthening expectations that the Federal Reserve can remain patient on interest rates.
Technical Analysis:
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Gold: The blue zone we highlighted in our plugin yesterday, after breaking above 4070 and pulling back, provided a perfect entry point aligned with the trend. This move could deliver a risk-reward ratio of over 10 times. Due to U.S. market holidays today, liquidity may weaken, so we recommend waiting or cautiously participating in the near-term yellow zone’s liquidity sweep, followed by any emerging bullish signals. For precise positions, please consult the plugin.
(Gold 15-minute chart)
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Nasdaq: Yesterday’s price failed to break through the expected level of 30,080, reaching a high of only 30,057, thus not meeting the conditions for a pullback buy. Due to the U.S. market holiday today, we recommend waiting and observing. For detailed positions, please consult the plugin.
(NASDAQ 15-minute chart)
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Crude oil: Prices have rebounded and broken above the yellow zone. Today, we will directly place a sell stop order. If prices fall below 69.05, attempt one sell trade. If prices continue to rise, remain观望 and wait for opportunities next week. For detailed positions, please consult the plugin.
(Crude Oil 15-minute Chart)
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Today’s key financial data and events to watch:
U.S. Independence Day holiday market closure
