Technical Analysis:
NASDAQ is trading around 18075 right now and we are expecting to see small retracement to the down side. We have already got a 15min market structure shift and we also have equal highs in 15 min chart if we want to go for sell we can but with smallest sl above the wicks in 15min chart.
Fundamentals:
Wall Street was poised for a higher open on Monday as traders priced in a greater chance of the Federal Reserve cutting interest rates this year following a soft payrolls data last week.
The benchmark S&P 500 SPX and the blue-chip Dow DJI closed at three-week highs on Friday after data showed U.S. job growth slowed more than expected in April, taking pressure off the U.S. central bank to keep rates higher for longer.
Traders are currently pricing in rate cuts worth 48 basis points from the Fed by the end of 2024, with the first cut expected in September or November, according to LSEG's rate probability app. In recent weeks, traders had priced in just one cut due to signs of sticky inflation.
"It's been this tug of war between what you're seeing play out in the rates market and the repricing of inflation and Fed policy versus what you're seeing on the earnings front," said Garrett Melson, portfolio strategist at Natixis Investment Managers Solutions.
"In our opinion, it's been a pretty even battle so far."
U.S. stock indexes appear to have stabilized after a rocky April, as a much better-than-expected first-quarter earnings season and hopes of U.S. monetary policy easing draw buyers back into the market.
The Fed left interest rates unchanged last week and signaled it was leaning toward eventual reductions in borrowing costs, but repeated that it wants to gain "greater confidence" that inflation will continue to fall before cutting rates.
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