{"id":116596,"date":"2025-07-16T14:38:46","date_gmt":"2025-07-16T11:38:46","guid":{"rendered":"https:\/\/ironfx-com.wp-dev.int.theitops.net\/?p=116596"},"modified":"2025-07-16T14:39:05","modified_gmt":"2025-07-16T11:39:05","slug":"equities-report-mixed-signals-from-us-equities-markets","status":"publish","type":"post","link":"https:\/\/www.ironfx-cn.com\/nl\/equities-report-mixed-signals-from-us-equities-markets\/","title":{"rendered":"Equities report: Mixed signals from US Equities markets"},"content":{"rendered":"

US stock markets tended to send out mixed signals since our last report as Nasdaq and S&P 500 remained relatively stable while Dow Jones took a dive implying bearish tendencies. In today\u2019s report we are to discuss fundamental issues regarding US stock market but also have a look at NVIDIA and conclude the report with a technical analysis of S&P 500\u2019s daily chart.<\/p>\n\n\n\n

Inflationary pressures in the US economy intensify<\/strong><\/a><\/h2>\n\n\n\n

The release of the June US CPI rates for June took the markets by surprise, as the rates showed an intensification of inflationary pressures in the US economy, beyond market expectations. The rates accelerated on a headline level to 3.7%yy, exceeding market expectations while on a core level also accelerated yet missed market expectations. The big picture though remains that inflationary pressures in the US economy are intensifying. It seems that Trump\u2019s tariffs are coming into effect, raising prices for consumers which in turn tends to verify the Fed\u2019s narrative and may force the bank to maintain rates high for longer. Today we focus on the release of the US PPI rates for the same month in an effort of further verification of the persistence of inflationary pressures in the US economy this time on a producers\u2019 level, yet its understandable that should inflationary pressures on a producers\u2019 level be substantial and persist over the coming months, manufacturers are expected to roll them over to consumers. Hence the PPI rates provide an idea of the relative \u201cdepth\u201d of inflationary pressures in the US economy. Overall, should we see the Fed\u2019s worries for inflationary pressures intensifying and the bank hardening its stance, then a bearish effect could be demonstrated in US equities markets.<\/p>\n\n\n\n

NVIDIA\u2019s upward momentum maintained<\/strong><\/h2>\n\n\n\n

NVIDIA\u2019s share price jumped yesterday as the company is planning to restart sales of its H20 AI chips to China as reported by Reuters. A possible renewal of NVIDIA\u2019s chip sales to China cancels out the restrictions that had been set on the company lifting its revenue outlook. Yet the issue seems to be deeper as its been reported that the lifting of the ban may be part of a trade deal between the US and China, with the red giant lifting restrictions of rare earth exports to the US. Given also the market\u2019s focus on AI and NVIDIA\u2019s leading role in the sector, we may see NVIDIA\u2019s share price continuing to gain support should the company proceed with exports to China.<\/p>\n\n\n\n

Trump\u2019s tariff wars continue<\/strong><\/h2>\n\n\n\n

US President Trump continued with his trade wars, threatening to levy a 30% tariff on imports entering US soil from the EU and Mexico, from August 1st onwards. Letters announcing the US intentions were sent on Saturday to the two sides. The US intentions were characterised by the EU and Mexico as unfair and efforts are still being made for a possible solution to the problem yet market hopes for such a scenario may have been weakened. Overall, the markets seem to be less sensitive to US President Trump\u2019s trade wars and despite the issue still being fundamentally important, seems to be generating little movement in US stock markets. Hence, it may take substantial unexpected developments for the markets to react on the issue. In any case, should market worries intensify over the issue we may see US stock markets losing ground, while a possible easing of market worries could turn the market sentiment more risk-oriented thus providing support for the US equities markets.<\/p>\n\n\n\n

Earnings reports released and ahead<\/strong><\/h2>\n\n\n\n

We make a start with the earnings paragraph today by noting that yesterday JP Morgan, Wells Fargo, Citigroup and Bank of NY Mellon reported better than expected figures both on a revenue and earnings level. The releases tend to highlight the health of the US banking sector sending positive signals for the US economy. We are to get a more complete picture for the sector by the release of the earnings reports of Morgan Stanley and Goldman Sachs later today. We also note today the release of the earnings reports of J&J, while tomorrow we get the earnings reports of Netflix and Pepsi. On Friday we get 3\u039c\u2019s earnings report and on Monday, Verizon\u2019s and on Tuesday Coca Cola\u2019s and Philip Morris\u2019s reports.<\/p>\n\n\n\n

TECHNISCHE ANALYSE<\/u><\/strong><\/h2>\n\n\n\n

US500 Daily Chart<\/strong><\/h2>\n\n\n\n
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