Dow, S&P 500, Nasdaq Gain; MP Materials, Plug Power, Nvidia, Tesla, More Movers; Trump China Trade Threats; Fed Rate Cut Hope
The S&P 500 was up 0.3% shortly before 2 p.m. ET after falling suddenly an hour earlier. The Nasdaq Composite was back up 0.6%. The Dow was up 66 points, or 0.2%.
Even the Vix was paring its earlier spike and moving back toward breakeven.
Markets have been jolting up and down ever since the Trump administration raised the temperature in the U.S.’s trade negotiations with China. Earnings season thus far has been solid, but some of the biggest names don’t report until later this month.
Frank Cappelleri, founder of technical analysis firm CappThesis, told Barron’s that the market is still searching for direction after Friday’s sharp decline.
“The rebound since then hasn’t shown any meaningful follow-through from either side — aside from a few intraday swings,” Cappelleri says. “Bears have been looking for an immediate breakdown, which hasn’t materialized. This week’s dip buyers–who are used to being instantly rewarded with new highs–haven’t seen that payoff either.”
Cappelleri thinks patience is warranted for both bears and bulls, alike.
“There’s no reason to jump in front of a move that hasn’t developed yet,” he says. “It’s better to wait for the next decisive break and then follow the momentum.”
